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TMI Blog1998 (8) TMI 237X X X X Extracts X X X X X X X X Extracts X X X X ..... ards are being classified in other Collectorates under TI 85.46. The Assistant Collector had rejected the above claim as the goods are not given the shape for use as insulators, that there is no condition that Electric Insulators of any Material should be in the form of direct fitment in electrical machinery. Therefore, he held even if it is held that such; insulators should be in ready to fit state for classification under T.H. 85.46 by virtue of Rule for Interpretation 2(a) of the Tariff, such insulating materials will have to be classified under T.H. 85.46. 2. It is stated in this appeal that the Collector s order suffers from basic infirmities of not observing the natural justice in as much as the order has been passed without considering the counter submission of the Assistant Collector on the submissions made by the assessee before him. It is stated that the Rule of Interpretation relied by Collector (Appeals) is uncalled for in as much as such a reference should a last resort. It is stated that Rule 1 of Rules of Interpretation of the Schedule itself provides that the classification shall be determined according to the terms of the heading and any relative section or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espite it, being used as an insulator by the end users, would be classifiable only under this Heading. It is also brought to notice to the respondents also manufactured Filter Plate which are cut out of wood which generally known as Compreg which is also classified under this Heading, i.e. 44.09. 3. We have heard Shri S. Kannan, JDR for Revenue and Shri C. Sampath, Advocate for the respondents. Ld. DR relied on the grounds mentioned in the appeal memorandum. He also relied on the judgment of this Bench rendered in the case of C.C.E. v. Western India Plywood Ltd. as reported in 1997 (96) E.L.T. 200. 4. Ld. Counsel submitted that Chapter Note 2 of Chapter 44 is not applicable since it does not deal with goods which has specifically principally manufactured for electrical insulation purposes. He relied on Rule 3(a) interpreted in Rules to contend that the heading which provides most specific description shall be preferred to headings providing a more general description. Rule 3(a) further states that when two or more headings each refer to part only of the materials of substances contained in mixed or composite goods or to part only of the items in a set, those headings are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The item in question is supplied in the varieties viz., Mysolamin and Mysopreg and were beards, sheets and baton of laminated densified wood which are being supplied as insulation material and not provided as insulators . The Assistant Commissioner in the order has noted from the printed product literature brought out by the assessee company describing Mysolamin as a non-impregnated laminated densified wood meant for transformer insulation. The Assistant Commissioner in para 2.6 and 2.7 has noted about the details of the products which is reproduced below :- 2.6. Mysolamin : Specially tested species of timber are selected (Vateria indica) which have high fibre strength and resin absorption characteristics. The timber is peeled into wood layers to the required sizes and all defects such as knots rots, fungus are removed. There layers are dried to minimise the moisture content to 6%. Thereafter, the dried wood layers are treated with special grade of phenolformaldehyde resin so that it picks up resin to the extent of 15-20%. The said layers are dried under critical conditions to remove moisture and volatile content present in resin. The wood layers are then assembled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overs electrical insulators of any material. The item in question are purchased by several industries for converting the same into electrical insulator as it satisfies the criteria of raw-material required for use as electrical insulator. It has been certified by Electrical Private Ltd. by their letter, dated 6-1-1987 for Mysolamin is in the form of boards, strips, battens, yoke plates, rings, segments, pressure pieces, supports and in other component form which are used in Transformer for fixing, supporting or guiding of electric current conductors besides insulating them electrically from each other and from earth. All of them have easy electrical resistance properties, but Chapter Note 2 of Chapter 44 clearly shows that such an item would be classifiable only as a densified wood under Heading 44.09. It is also seen from HSN Notes at Page 633 under Chapter Heading 44.13, which is identical to 44.09 that densified wood used as insulators and other electrical goods would fall under the said heading. The details given by HSN Explanatory Notes under this heading is reproduced below :- 44.13. DENSIFIED WOOD, IN BLOCKS, PLATES, STRIPS OR PROFILE SHAPES. Densified wood covered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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