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TMI Blog1987 (8) TMI 322X X X X Extracts X X X X X X X X Extracts X X X X ..... under T.I. 26A. The covering of the said strips by glass fibre does not bring into existence in different goods or fresh articles. The appellants Filed a classification list on 25-6-1982 and sought classification of the said copper strips covered with glass fibre under T.I. 26A(2) of CET. 2. On 14-10-1982, a show cause notice was issued that the goods should be classified under T.1.68 because the copper strips being insulated acquired the separate and distinct character as conductors. The appellants sent a reply contending that the copper strips by being bonded with glass fibre would not amount to manufacture under Section 2(f) of the Act. The Assistant Collector held that the strips lapped by glass fibre yarn were different products havin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction. He placed reliance on 1986 (25) E.L.T. 473 (S.C.) = 1986 (8) ETR 513 {M/s. Atul Glass Industries (P) Ltd. v. C.C.E.] where the Hon'ble Supreme Court held that it was a matter of common experience that the identity of an article was associated with its primary function. He relied on AIR 1974 (S.C.) 1362 (M/s. Ganesh Trading Co. v. C.C.E., Haryana) and pointed out that husking of paddy was considered as manufacture. The effect of the operation on the product should be the criteria to determine the classification. 5. We have considered the contentions raised by both the parties. The admitted facts will show that the appellants used copper strips and insulated the strips with varnish bonded glass fibre etc. Such an insulation is neces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be said to take place. Where there is no essential difference in identity between the original commodity and the processed article it is not possible to say that one commodity has been consumed in the manufacture of another." It is common knowledge that in every process, the original commodity may undergo a change, but it is only when the change takes the commodity whether it is commercially regarded as a distinct article when manufacture could be said to have taken place. Applying that test it was held that the character of copper strips was not changed by the mere application of this special process and it cannot be included in the residuary item. The judgment of the Bombay High Court is on all fours to the facts of this case. The Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f opinion that the insulation copper strips in question will not attract duty under T.I. 68. The appeal is hence allowed. 8. The show cause notice proceeded by saying that the classification list for varnished bonded glass fibre covered rectangular copper strips/conductors was submitted under Tariff Item 26A(2), but since the strips were insulated, they acquired a separate and distinct character as a conductor. The bare strips were classifiable under Tariff Item 26A(2); after insulation they fell under Tariff Item 68. 9. This reasoning was held in the adjudication by the Assistant Collector who ruled that Tariff Item 26A applied to copper and its alloys on bare metal in any crude form or any other form. He said that copper strips which a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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