1991 (8) TMI 205 - AT - Central Excise

Summary

Issues: Classification of insulation tapes under the Central Excise Tariff Act, 1985.

The judgment by the Appellate Tribunal CEGAT, New Delhi involved an appeal by Intek Tapes Private Limited against the order passed by the Collector of Customs and Central Excise, Bangalore. The appellant claimed assessment under Heading 8546.00 for manufacturing insulation tapes from polyester film and PVC, citing a previous Tribunal decision in the case of Chetna Polycoats (P) Ltd. The appellant's advocate argued for the acceptance of the appeal based on the similarity of facts with the aforementioned case. The respondent, represented by the SDR, did not contest the decisions cited by the appellant. Both sides were heard, and it was noted that the facts of the present case were similar to the Chetna Polycoats case. The Tribunal analyzed the Central Excise Tariff Act, 1985, and the Harmonised Commodity Description and Coding System to determine the classification of electrical insulating tapes. Referring to previous case law and technical authorities, the Tribunal concluded that the goods in question, being electrical insulating tapes with adhesive properties, could be described as electrical insulators under Heading 85.46, sub-heading 8546.00. Therefore, the Tribunal set aside the lower authorities' orders and allowed the appeal.

The judgment highlighted that the Hon'ble Supreme Court had affirmed the Tribunal's findings in a separate decision, emphasizing that Electrical Insulating Tapes are classifiable under Heading 85.46 (8546.00) of the Central Excise Tariff Act, 1985, and not under Heading 39.19. Based on the Supreme Court's observations and the Tribunal's analysis, it was held that the insulation tapes manufactured by the appellant fell under Heading 8546.00. Consequently, the appeal was allowed, and the revenue authorities were directed to give consequential effect to the order.