2002 (11) TMI 147

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..... ng foils which are imported by them in running length. The assessee embosses these foils with hologram image, by means of what is stated to be inkless duplication process, and appears to be some kind of thermal embossing process (although it is not by no means established). The embossed stamping foils roll is coated with adhesive and laminated with release paper. Thereafter the roll is so processed as to separate each individual hologram - while still fixed to the release paper so that it can be pulled off by the customer - cut into strips of 17.5 cm packed into rolls. The appellant manufactures three types of holograms. One has base paper pasted on stamping foil; another does not have, in the process of manufacture of release paper base al .....

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..... em to be correctly classifiable in Heading 49. He finds that the goods under consideration are appropriately classifiable in Heading 39.19, which covers self-adhesive strips of plastic and hence they are excluded from classification under 49 by Note 2 to Section VII. This is the point that the departmental representative makes before us, emphasising that the goods cannot be used without their being made self-adhesive. He points out that the test report of the goods showed the goods consists of polyester plastic film having adhesive coating on one side and the report suggests that "this may be considered as plastic based self-adhesive hologram." 6. The Commissioner does not dispute that the raw material for the manufacture of the product is .....

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..... pporting sheet of plastic. Unless the process to which the appellant subjects the material alters it to such extent that it is no longer classifiable in Heading 32.12, it will not lead to Heading 39.19. The only possible way that a stamping foil can become plastic, that we can conceive of is, to remove the metal of pigment which is deposited on the stamping foil. The fact that the stamping foil become self-adhesive will not by itself result in its ceasing to be stamping foil and becoming classifiable in Heading 39.19. The property of being self-adhesive is not the primary criterion for classifying the goods in that heading. For that they have to be of plastic and that this stamping foil is not. The contention of the departmental representat .....

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