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TMI Blog1997 (5) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... r Chapter Heading 8546 which covers electrical insulators of any material. The learned Collector (Appeals) has confirmed this classification and has relied upon the decision of the Tribunal in the case of Collector of Central Excise v. Metrowood Engineering Works reported in 1989 (43) E.L.T. 660. The decision rendered was in the context of industrial laminates which were electrical insulators in nature and the competing Tariff Heading in that case were 8546.00 and Chapter 39 and the Tribunal in that case took note of the properties of laminated sheets and relied upon the Chapter Note 2(n) under Chapter 39 and held that the item was excluded from the purview of Tariff Heading 39. 2. The learned JDR for the Department has pleaded that densi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ks, plates and sheets the description as set out under Chapter Heading 4409. He has pleaded the only items which stand excluded can be those falling under Section XVI as set out in Note 1(k) which reads as under : Articles of Section XVI or Section XVII (for example, machine parts, cases, covers, cabinets for machines and apparatus and wheel-wrights wares). He has pleaded the articles which stand excluded for assessment purposes under Chapter 44 are formed items and other articles which would stand excluded will have to be such as would correspond to the examples as given in Chapter Note 1(k). He has pleaded therefore inasmuch as the goods are in the form of strips and blocks and do not correspond to any one of the items mentioned in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Chapter 44. She has pleaded the ratio of the Tribunal cited squarely applies to the facts of this case. She has also in this connection referred us to the decision of the Hon ble Bombay High Court in the case of XL Telecom Pvt. Ltd. v. Union of India reported in 1994 (70) E.L.T. 530. She has pleaded that in that case the issue was regarding classification of components for cable jointing kits and the competing Tariff Headings were 85.47 and 39.26. The Hon ble High Court she has pleaded in that case held that the raw materials for manufacture of components for cable jointing kits could also be considered as insulating materials and therefore classifiable under Tariff Heading 85.47 in preference to the Tariff Heading 39.26. She has also re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricity can be considered as electrical agency and the resistance to the same can be taken to mean that it provides insulation for the same. Thus the Densified Wood having electrical insulation properties by virtue of Chapter Note 2 falls under this heading. The material manufactured by the respondents answers to the forms as set out under Chapter Heading 4409 blocks, plates, strips etc. A reading of Chapter Heading with Chapter Note 2 therefore clearly shows that the goods in question fall within the ambit of Chapter 44. The plea of the respondents however is that by virtue of Chapter Note 1(k) which lists out the items as excluded from the purview of Chapter 44 covers articles of Section XVI and since the insulating materials fall under Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave. The densified wood with certain specified properties is specifically stated to be covered under the description Densified Wood as discussed by us earlier. The ratio of decisions cited on this ground alone can be taken to be distinguishable. We also find that the Tribunal has relied upon Chapter Note 2(n) to Chapter 39 to hold that the laminated sheets in that case would stand excluded from the purview of Chapter 39. This Chapter Note 2(n) for convenience of reference is reproduced below : Articles of Section XVI (machines and mechanical or electrical appliances). We observe that the items which stand excluded from the scope of Chapter 39 are only such of those which are made of plastic materials but are in the nature of machine a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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