Classification of paper based decorative/industrial laminates - Regarding - Central Excise - 19/89

Classification of paper based decorative/industrial laminates - Regarding Circular No. 19/89 Dated 2-5-1989 [From F. No. 61/3/89-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of paper based decorative/industrial laminates - Regarding. Attention is invited to the classification of paper based decorative/industrial laminates, and to state that the Board has clarified that they would be appropritely classifiable under Chapter 39 of CETA 85 vide Boards letter F. No. 93/109/86-CX.3, dated 24-10-1986 . In view of the reported evasion of duty on such decorative/industrial laminates and representation from the Trade, the Board had in F. No. 207/209/88-CX.6, dated 27-12-1988 directed the Collectors to ensure the correct classification of the product and remove divergence. It is reported that in certain cases contrary assessments/classification is being made under order of Courts/Tribunal. Recently the CEGAT in the case of Amit Polymers Composites Ltd. v. Collector of Central Excise, Hyderabad (Orders No. 805/806/1988-C dated 30-11-1988) had held that such decorative laminated sheets are not classifiable under Chapter 39 but are more appropriately classified under Chapter 48, Sub-heading 4818.90. The Board has not accepted the decision and appeal to the Supreme Court is being filed. In these circumstances, it is necessary to ensure that Department's case is conducted vigorously effectively before the Courts/Tribunal to ensure the correct classification of goods. Only such products consisting of sheets of paper impregnated with plastics compressed together having more the character of paper as are covered by HSN Explanatory Note at page 555, may be classifiable under Chapter 48. If they have a hard rigid character they are classifiable under Chapter 39. Field formations may be informed accordingly.