1994 (9) TMI 180 - AT - Customs

Summary

Issues:
1. Interpretation of Notification No. 52/86-C.E., dated 10-2-1986 regarding concessional rate of c.v. duty.
2. Classification of imported goods impregnated with resin under the Central Excise Tariff.
3. Whether Glass Banding Tapes impregnated with polyester resin are eligible for concessional rate of c.v. duty.

Analysis:
1. The case involved an appeal against the order of the Collector of Customs (Appeals) regarding the eligibility of Glass Banding Tapes for a concessional rate of c.v. duty under Notification No. 52/86-C.E., dated 10-2-1986. The Assistant Collector and the Collector (Appeals) held that the imported goods impregnated with "semi-cured polyester resin" did not qualify for the concessional rate. The appellants contested this decision, arguing that the goods were eligible under the notification.

2. The appellants contended that the impregnated goods should not be considered as plastic impregnated, emphasizing that they were impregnated with resin only. The respondent, however, supported the lower authorities' decision, citing a Tribunal decision that deemed resin as covered by the general term "Plastics." The Tribunal analyzed the nature of polyester resin, classifying it as an alkyd type of resin falling under Chapter 39 of the Central Excise Tariff, thus categorizing it as plastic material. This classification led to the rejection of the appellants' argument.

3. The Tribunal examined the characteristics and uses of polyester resin, determining that it falls under the category of plastic material. Considering the Tribunal's precedent and technical definitions, the Tribunal upheld the decision of the Collector (Appeals) and rejected the appeal. The judgment emphasized that the Polyester Resin impregnated tapes imported by the appellants should be deemed as plastic impregnated, making them ineligible for the concessional rate of c.v. duty under the notification.

In conclusion, the Tribunal found no error in the Collector (Appeals)'s order and dismissed the appeal, affirming that Glass Banding Tapes impregnated with polyester resin were correctly classified as plastic impregnated goods, thereby not qualifying for the concessional rate of c.v. duty as per Notification No. 52/86-C.E., dated 10-2-1986.