1988 (4) TMI 181 - AT - Central Excise

Summary

Issues Involved
1. Classification of laminated sheets under Central Excise Tariff Item 15A(2) or 68.
2. Determination of whether laminated sheets are considered plastic sheets based on trade parlance.

Summary of Judgment

Issue 1: Classification of Laminated Sheets
- The appeals were filed by the Collector of Central Excise, Ahmedabad against the orders of the Collector of Central Excise (Appeals) Bombay, which classified laminated sheets under T.I. 68 instead of T.I. 15A(2).
- The respondents manufactured laminated sheets using duty-paid paper (T.I. 17) and chemicals (T.I. 68). The process involved creating a resin forming solution, impregnating paper sheets with it, and pressing them under heat and pressure to form laminated sheets.
- The lower appellate authority held these laminated sheets as assessable under T.I. 68, while the revenue argued they should be under T.I. 15A(2) because the resin forming solution used is considered resole, falling under T.I. 15A(1).

Issue 2: Trade Parlance and Classification
- The learned JDR for the Department argued that the laminated sheets should be classified under T.I. 15A(2) because they are made from resole, which falls under T.I. 15A(1). He cited various standards and literature to support that the sheets are considered articles of plastic.
- The respondents argued that the issue is the classification of the final product, not the resin forming solution. They cited the Supreme Court's judgment in Geep Flashlight, emphasizing that trade parlance should determine classification, and the laminated sheets are not commercially known as plastic sheets.
- The Tribunal noted that the laminated sheets are not exclusively made out of resole and that the paper content is over 70%. They referred to a similar case (Bakelite Hylam) where impregnated paper was not considered resin, thus laminated sheets should not be considered plastic sheets either.
- The Tribunal concluded that the laminated sheets are not understood in trade as plastic sheets and are therefore assessable under T.I. 68, dismissing the revenue's appeals.