1997 (10) TMI 131 - AT - Central Excise

Summary

Issues:
Classification of Industrial Laminates and Pre-Preg under Chapter sub-headings 3920.37 and 3926.90 respectively.

Detailed Analysis:
The appellants, engaged in manufacturing Insulators and Laminates, contested the classification of Industrial Laminates (Cotton Fabric reinforced) and Pre-Preg (Cotton fabrics) under Chapter sub-heading 3926.90, while the Department argued for classification under Chapter Heading 3920.37. The ld. Tax Advisor cited precedents where similar products were classified under 3926.90, emphasizing consistency in classification by the Tribunal. The ld. SDR, representing the Revenue, referred to a Supreme Court ruling regarding materials with a hard and rigid character, asserting that the products in question fell under Chapter 39. The ld. DR contended that the products, being in sheet form, should be classified under Chapter sub-heading 3920.37 based on their rigidity.

The Tribunal analyzed Chapter Headings 3920 and 3926, focusing on sub-headings 3920.37 (Rigid laminated) and 3926.90 (Other). Referring to previous decisions, the Tribunal upheld that cotton fabric-based laminates should be classified under 3926.90. It differentiated the present case involving textiles from the Supreme Court ruling, which did not consider textile-containing products. Consequently, the Tribunal ruled in favor of classifying the products under Chapter sub-heading 3926.90, allowing the appeals and dismissing miscellaneous applications.

In conclusion, the judgment resolved the classification dispute by determining that the Industrial Laminates and Pre-Preg should be classified under Chapter sub-heading 3926.90 based on the nature of the products and previous precedents, deviating from the Revenue's argument and aligning with the appellants' position supported by consistent Tribunal decisions.