1990 (9) TMI 166 - AT - Central Excise

Summary

Issues:
Classification of paper based decorative laminated sheets under the First Schedule to the Central Excise Tariff Act, 1985.

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved the classification of paper based decorative laminated sheets under the Central Excise Tariff Act. The lower authorities had classified the goods under sub-heading No. 3920.37 as rigid laminated plastic sheets, contrary to the appellants' claim for classification under sub-heading No. 4823.90. The key issue was to determine the correct classification of the goods under the tariff schedule.

During the hearing, the appellants' counsel referred to previous Tribunal decisions in similar cases to support their claim for classification under sub-heading No. 4823.90. They argued that the goods should be classified under this sub-heading based on the Tribunal's earlier decisions, which considered paper based decorative laminated sheets containing plastics to fall under this classification.

In response, the respondent sought to distinguish the present case from previous decisions, relying on Chapter note 1(f) which excluded certain goods from the scope of Chapter 48 of the Schedule. The respondent argued that the present goods, being multi-layered, did not fall under the prescription that plastics should constitute more than half the total thickness, as it applied to goods consisting of one layer of paper or paper board coated with plastics.

After considering the submissions, the Tribunal rejected the respondent's contentions and upheld the appellants' claim for classification under Chapter 48. The Tribunal noted that the goods in question were more appropriately termed as resin-reinforced paper sheets rather than paper-reinforced plastic sheets. The manufacturing process involved resin impregnated paper sheets laminated together, which led to the conclusion that Chapter 48 was the correct classification for the goods.

The Tribunal found similarities between the manufacturing process in the present case and previous decisions, particularly the Amit Polymers case. Therefore, the Tribunal set aside the lower authority's classification and directed that the goods be classified under Chapter 48, in line with the Tribunal's previous decisions in similar cases.