1988 (2) TMI 366 - AT - Central Excise

Summary

Issues Involved:
1. Classification of Industrial Laminates (Electrical Insulators) u/s new Central Excise Tariff Act, 1985.
2. Classification of Industrial Laminates of paper base with copper cladding.

Summary:

Issue 1: Classification of Industrial Laminates (Electrical Insulators) u/s new Central Excise Tariff Act, 1985
M/s. Metro Wood & Engineering Works Ltd., M/s. Miltex Laminates (P) Ltd., and M/s. Bakelite Hylam Limited filed classification lists claiming their Industrial Laminates as "Electrical Insulators" under Heading 8546.00, chargeable to duty @ 15% ad valorem. The Assistant Collector of Central Excise classified these products under Heading 3920.31, chargeable to duty @ 35% ad valorem. The respondents challenged this classification, and the Collector of Central Excise (Appeals) ruled in favor of the respondents, classifying the products under Heading 8546.00. The Revenue filed appeals against this decision, arguing that the industrial laminates are raw materials for insulators and should be classified under Heading 3920.31.

The Tribunal considered the records and arguments, referencing previous decisions and definitions of "insulators" from technical literature. It held that the industrial laminates are indeed "Electrical Insulators" and should be classified under Heading 8546.00, thereby excluding them from Chapter 39 per Chapter Note 2(n). The Tribunal emphasized that the identity of the goods did not change with the introduction of the new tariff and that minor fabrication such as cutting and making holes does not alter their classification as insulators.

Issue 2: Classification of Industrial Laminates of paper base with copper cladding
M/s. Bakelite Hylam Limited classified their paper-based industrial laminates with copper cladding under Heading 8546.00 and paid duty at 15% ad valorem. The Assistant Collector re-classified these laminates under Heading 7413.90 as "other articles of copper," but the Collector (Appeals) classified them under Heading 74.06 as "copper foils." The Revenue argued for classification under Heading 7413.90.

The Tribunal upheld the Collector (Appeals)' decision, referencing Chapter Note 1(viii) of Chapter 74, which defines copper foil, and the Compendium of Classification Opinions under the Harmonized Commodity Description and Coding System. It concluded that the product fits the definition of copper foil and should be classified under Heading 74.06, a specific entry for copper foil, as opposed to the more general Heading 7413.90. The Tribunal also cited the principle that in cases of ambiguity, the interpretation favorable to the assessee should be adopted.

Conclusion:
The Tribunal dismissed all three appeals filed by the Revenue, upholding the decisions of the Collectors of Central Excise (Appeals) and affirming the classification of the industrial laminates as "Electrical Insulators" under Heading 8546.00 and the copper-cladded laminates under Heading 74.06.