9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1997 (12) TMI 194 - AT - Central Excise
Issues: Classification of product under Central Excise Tariff Act, 1985.
The judgment revolves around the classification of the Respondents' product described as "Paper based Synthetic Resin Bonded Insulator Sheets and Board" under the Central Excise Tariff Act, 1985. The Department issued a show cause notice (SCN) based on a test report, proposing classification under sub-heading 3920.31 instead of sub-heading 8546.00, which attracted a different rate of duty. The Assistant Collector initially classified the product under sub-heading 3920.31, considering it as "Plastic laminated sheets" based on its characteristics and market representation, despite the Respondents' claim of it being electrical insulators primarily used in A.C. Control Panels. However, the Collector (Appeals) reversed this decision and classified the product under sub-heading 8546.00, emphasizing the end use and commercial understanding as electrical insulators. In the appeal before the Appellate Tribunal, the Department argued that the Collector (Appeals) disregarded the expert opinion on the product's intended use and misinterpreted the classification rules under Chapter 39 of the Tariff Act. They contended that the product fell under Heading 39.20 as "Laminated Plastic Sheets" and should not be classified based on its end use as an electrical insulator. Conversely, the Respondents' Advocate highlighted the test report's remarks and the trade's recognition of the product as electrical insulators, contradicting the Department's classification arguments. The Tribunal, after considering both sides' contentions, rejected the Departmental Appeal. They emphasized the importance of how the product is known in trade and commercial understanding, citing precedents where the Supreme Court upheld the significance of trade recognition in product classification. The Tribunal upheld the Collector (Appeals) decision, emphasizing the commercial understanding of the product as electrical insulators over its technical characteristics for classification purposes.
|
