1987 (9) TMI 168 - AT - Central Excise

Summary

Issues: Classification of electrical insulators under Central Excise Tariff (C.E.T.) Item No. 22F or Item No. 68 CET.

The judgment concerns the classification of electrical insulators made of Glass Fibre reinforced plastics under the Central Excise Tariff. The dispute arose due to amendments in the tariff items, with the department contending that the correct classification was under Item 22F, not Item 68 CET as claimed by the appellants. The Assistant Collector initially classified the goods under Item 22F, leading to the appeal before the Tribunal. The main contention revolved around whether the glass fibre content in the insulators should be considered under Item 22F, given its predominance by weight in the final product. The appellants argued that glass is synthetic and not a natural mineral product, thus not falling under Item 22F. They cited precedents to support their position, including cases involving similar products classified under different tariff items. On the other hand, the department argued that even under the amended entry, glass fibre is considered a mineral fibre, making the goods eligible for classification under Item 22F. They referenced tribunal decisions emphasizing the predominance of glass fibre as the determining factor for classification. The Tribunal addressed the issue of classification post the effective date of the amendments and overruled objections regarding the scope of the appeal before delving into the substantive classification issue.

The Tribunal analyzed the relevant provisions of Item No. 22F of the Central Excise Tariff, which included mineral fibres and yarn, and manufactures predominantly made from such fibres. The inclusion of glass fibre under mineral fibres in the tariff was noted, despite it being a man-made substance. The Tribunal rejected the appellants' argument that the goods should not be classified under Item 22F solely based on the synthetic nature of glass. Precedents cited by the appellants were distinguished as not directly applicable to the present case, as they focused on different aspects of the goods' composition or manufacturing process. The Tribunal emphasized the predominance of glass fibre in the final product as the key factor for classification under Item 22F. The decision in favor of classification under Item 22F was based on the weightage of glass fibre in the insulators, aligning with the criteria set out in the tariff item.

In conclusion, the Tribunal dismissed the appeal and upheld the classification of the electrical insulators under Item No. 22F of the Central Excise Tariff. The decision rested on the predominance of glass fibre in the final product, meeting the criteria specified in the tariff item for classification. The Tribunal clarified the applicability of precedents cited by both parties, emphasizing the specific factors determining the classification of goods under the relevant tariff provisions.