9911796707
TMI Blog2001 (7) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... II reported in 2001 (133) E.L.T. 151 (T) = 2001 (75) ECC 553 (Tri.), we thought fit to take up the appeal itself for disposal after waiving the deposit and with the consent of both sides. 3. The appellant is engaged in the manufacture of Plastic Insulated Liners, which is used by the Indian Railways in its railway track construction. These liners are primarily used by the Railways for fastening rails to concrete sleepers. While laying down a railway line, first the sleepers made of wood or concrete are laid; on the sleepers the steel rails ARE PUT. The rails are fastened to the sleepers with the help of fastening joint assembly, which includes these Liners as one of the component of the joint assembly. When concrete sleepers are used for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Insulators are made of any insulating material including plastic and are used on out-door cable for example electrical traction systems (railway, tram-way, trolley buses etc.); it therefore appears that such plastic liners are used for insulation purposes and therefore these are automatically excluded from the purview of chapter 39 of the schedule to Central Excise Tariff Act, 1985. In view of chapter note 3(n) of chapter 39, as discussed above, as the "Electrical Insulators" of any material are classifiable under chapter sub-heading No. 8546.00 of the schedule to Central Excise Tariff Act, 1985, and falls within Section XVI of the said schedule and therefore such Plastic insulating liners which have been sold to Indian Railways, to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esistance is prescribed for these articles. It is also submitted that the tests prescribed for these articles, inter alia, prescribes the test for the water absorption capacity of these articles and water absorption up to a certain limit is acceptable. In case of the insulators water absorption is not permissible at all. This fact also proves our contention that the articles under consideration are not to be considered as insulators." 5. The Adjudicating Authority by the order dated 28-9-2000 rejected the contentions raised by the assessee. The Adjudicating Authority referred to chapter note 2(n) and held as follows : "I have gone through the relevant facts and materials and find that the primary use of plastic insulated liners is as a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es on electrical traction systems and therefore fully covered under chapter heading 85.46 of the Schedule to the Central Excise Tariff Act, 1985. The assessee have misquoted the H.S.N. Explanatory Notes to Heading 85.46 stating that the articles are neither used for fixing, supporting, guiding of electric current conductors nor for use on outdoor cables. It is very clear from the H.S.N. Explanatory Notes on chapter heading 85.46 that insulators used on electrical traction system are duly covered by the said heading." 6. He also referred to the case law of H.M. Bag Manufacturer v. Collector of Central Excise reported in 1997 (94) E.L.T. 3 (S.C.) but relied on the Board's Circular No. 189/23/96-CX, dated 26-3-96 for confirmation of the duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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