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Classification of composite articles made of plastics and fiber glass under Chapter 39 or Chapter 70. Analysis: The case involved an appeal by the Department against an Order-in-Appeal passed by the Collector of Central Excise, Madras, regarding the classification of articles manufactured by M/s. Coromandal Prodorite Pvt. Ltd. The Department contended that the items should be classified under Chapter Heading 70.14, covering glass fibers and articles thereof, while the Collector (Appeals) allowed the appeal, classifying the goods under Chapter Heading 39. The main dispute revolved around whether the predominant material in the composite articles, which were plastic reinforced with fiber glass, should determine their classification. The Department argued that the main characteristic of the items, being glass fibers, should dictate their classification under Chapter 70.14, emphasizing technical literature on reinforced plastics and the specific nature of the goods. They relied on the Interpretative Rules and a Chemical Examiner's report confirming the composite nature of the products. Additionally, they referred to a Supreme Court decision emphasizing the preference for specific headings over general ones in classification. On the other hand, the Respondents contended that the goods should be classified under Chapter Heading 39, as they were primarily articles of plastics reinforced with fiber glass. They highlighted that the products were marketed as articles of plastics reinforced with fiber glass and argued that the essential character of the goods was that of plastics. They referenced relevant tariff entries and a Supreme Court decision supporting their stance on the classification of composite articles made of plastic and non-plastic materials. After considering the submissions from both parties and examining the records, the Tribunal upheld the impugned order passed by the Collector (Appeals). The Tribunal agreed with the Respondents that the products, being plastic reinforced with fiber glass where plastic predominated, should be classified under Chapter Heading 39 rather than Chapter 70.14. They found no merit in the Department's argument for classification under Chapter 70.14, citing a Circular issued by the Board and the essential character of the goods as articles of plastics. Consequently, the appeal filed by the Department was dismissed. In conclusion, the Tribunal's decision clarified the classification of composite articles made of plastics and fiber glass, emphasizing the essential character of the goods and the predominance of plastics in determining their classification under the Central Excise Tariff.
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