1995 (10) TMI 86 - AT - Central Excise

Summary

Issues:
1. Classification of fibre glass reinforced plastic roofing sheet under Central Excise Tariff.
2. Interpretation of Chapter Notes 10 and 11(b) of Chapter 39 of Central Excise Tariff.
3. Applicability of sub-heading No. 3922.90 for classification of roofing sheets.
4. Compliance with Section Note and Chapter Note for classification.

Analysis:
1. The appeal concerns the classification of fibre glass reinforced plastic roofing sheets under the Central Excise Tariff. The Collector of Central Excise (Appeals) had classified the product under sub-heading No. 3922.90 of the CET, 1985. The Assistant Collector, however, had classified the roofing sheets under sub-heading No. 3920.31 as rigid plates, sheets, film, foil, and strips. The issue revolved around whether the product falls under Chapter Note 11(b) of Chapter 39, which applies to structural elements used for ceilings or roofs. The Appellate Tribunal upheld the Collector's classification under sub-heading No. 3922.90, considering the nature of the goods and their use for roofing purposes.

2. The Tribunal analyzed Chapter Notes 10 and 11(b) of Chapter 39 of the Central Excise Tariff. Chapter Note 10 specifies that the expression "plates, sheets, film, foil, and strip" applies to specific forms of plastic materials. In contrast, Chapter Note 11(b) pertains to structural elements used for ceilings or roofs. The Tribunal found that the roofing sheets in question, being structural elements for roofing, align with the criteria set forth in Note 11(b). The Tribunal emphasized that classification should adhere to Section Note and Chapter Note guidelines, as per the Rules for the Interpretation of the Tariff Schedule.

3. The Revenue contended that the roofing sheets should not be classified under sub-heading No. 3922.90, arguing that the rigid plastic sheets manufactured by the assessee do not qualify as articles of plastic under that sub-heading. However, the Tribunal rejected this argument, emphasizing that the classification should consider the actual use of the product as structural elements for roofing. The Tribunal upheld the classification under sub-heading No. 3922.90 based on the application of Chapter Note 11(b.

4. In its decision, the Tribunal highlighted the importance of following Section Note and Chapter Note guidelines for accurate classification under the Central Excise Tariff. The Tribunal found that the Collector (Appeals) had correctly applied Chapter Note 11(b) in classifying the roofing sheets under sub-heading No. 3922.90. The Tribunal concluded that the Collector's order was lawful and devoid of ambiguity or illegality, leading to the rejection of the appeal. The judgment underscores the significance of interpreting tariff provisions in alignment with the specific characteristics and intended use of the goods in question.