2018 (6) TMI 127 - AT - Central Excise

Classification of goods - uncoated paperboard - electrical grade insulating pressboard - insulating fittings as known as spacers - Held that - Products merits classification as namely (i) uncoated paperboard under heading 4805 (ii) electrical grade insulating pressboard under heading 4810 and (iii) spacers under heading 8547.9090 of Central Excise Tariff Act - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of uncoated paperboard, electrical grade insulating pressboard, and spacers under the Central Excise Tariff Act.

Analysis:

1. Uncoated Paperboard and Electrical Grade Insulating Pressboard:
The appellant company manufactured uncoated paperboard and electrical grade insulating pressboard during the relevant period. The Revenue contended that these products are electrical insulators classifiable under tariff item 8546.9090. The Central Excise team visited the factory and based on the end-use in the transformer industry and uncoated nature of the products, issued show cause notices (SCNs). The adjudicating authority confirmed the duty demand, a decision upheld by the Commissioner (Appeals). However, the appellants argued that the products should be classified under Chapter 48, relying on consistent classification decisions. The Tribunal found that the products should indeed be classified under headings 4805 and 4810, as previously held by the Commissioner of Central Excise, Mysore. The Tribunal emphasized the need for consistent classification and set aside the impugned orders, allowing the appeals.

2. Spacers:
The appellant also manufactured insulating fittings known as spacers, which were classified under heading 8547.9090. The appellant's counsel argued that spacers are not insulators but insulating fittings used in transformers, with specific dimensions as per customer orders. Citing a previous order, the counsel contended that spacers fall under heading 8547. The Tribunal noted that the Commissioner (Appeals) had previously classified spacers under heading 8547, a decision accepted by the Revenue. Therefore, the Tribunal upheld the classification of spacers under heading 8547.9090 of the Central Excise Tariff Act.

In conclusion, the Tribunal held that the uncoated paperboard and electrical grade insulating pressboard should be classified under headings 4805 and 4810, respectively, while the spacers should be classified under heading 8547.9090. The impugned orders were set aside, and the appeals were allowed with consequential relief, emphasizing the importance of consistent classification decisions to avoid divergent stands on the same product.