2010 (7) TMI 386 - AT - Central Excise

Woven polyester tapes Classification - product called a tape only on account of its shape and the width - absence of insulating properties in the product in question so as to classify the same under the tariff heading 5406.10 Appeal dismissed

Summary

Issues: Classification of woven polyester tapes under Central Excise Tariff Act, 1985.

In this case, the issue revolved around the classification of woven polyester tapes manufactured by the respondents under the Central Excise Tariff Act, 1985. The Assistant Commissioner had issued show cause notices to the respondent based on the presumption that the tapes were electrical insulators used by a customer in manufacturing electrical machinery. However, the adjudicating authority discharged the show cause notices, stating that the tapes did not possess insulation properties as required for classification under the relevant tariff heading. The authority considered various factors such as the manufacturing process, end use, and expert opinions to conclude that the tapes were not electrical insulators. The lower appellate authority also upheld this decision, emphasizing that the end use of the product should not dictate its classification under the tariff headings. The authorities found that the tapes lacked insulating capacity and were merely called "tape" due to their shape and width. Therefore, the classification of the woven polyester tapes as electrical insulators was deemed inappropriate under the Central Excise Tariff Act, 1985.

The judgment highlighted the criteria for classifying products as electrical insulators under Tariff Heading 85.46. It referenced the HSN Explanatory Note, which outlined the characteristics of insulators, including their purpose, materials, shapes, and surface properties. The note emphasized that insulators are typically made of hard and non-porous materials to prevent the formation of conducting materials on their surfaces. The note also mentioned the various shapes and construction features of insulators, as well as their applications in different settings such as outdoor cables and electrical installations. The judgment used this information to assess whether the woven polyester tapes in question met the criteria to be classified as electrical insulators under the specified tariff heading.

The decision ultimately rested on the absence of insulating properties in the woven polyester tapes. The authorities noted that the appellants failed to provide any evidence demonstrating the insulating capacity of the product. The product was described as a tape primarily due to its shape and width, without any indication of insulation capabilities. As a result, the authorities concluded that the product did not qualify as an electrical insulator under the relevant tariff heading. The judgment affirmed the lower authorities' findings that the product did not exhibit the necessary characteristics to be classified as an electrical insulator, leading to the dismissal of the appeal.