Classification of microporous PVC battery separators as articles of plastic, not rigid PVC sheets, secured excise exemption.

Microporous PVC battery separators cut to size were examined by their manufacturing process and chemical composition, including ribs, webs and sintered microporous structure. Because the goods functioned as insulation between battery plates while permitting acid passage through porosity, they were treated as finished battery-use articles rather than mere rigid PVC sheeting. On that basis, the earlier classification under Item 15A(2) as rigid PVC sheets was rejected, and the goods were classified as articles made of plastic. The product was accordingly held eligible for exemption under Notification No. 68/71 dated 02-05-1971.

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Issues: Whether microporous PVC battery separators manufactured and cleared in cut-to-size form were classifiable as rigid PVC sheets under Item 15A(2) of the Central Excise Tariff, or as articles made of plastic eligible for exemption under Notification No. 68/71 dated 02-05-1971.

Analysis: The product was examined in the light of the manufacturing process and the Chemical Examiner's report. The separators were found to be sintered PVC products with ribs and webs, cut to the required length and thickness, and having microporous properties. Their function was to act as insulation between battery plates and to permit acid passage by virtue of porosity. On that factual basis, the goods were not treated as mere rigid PVC sheeting, but as finished articles specifically designed for use in batteries. The earlier classification as rigid PVC sheets was therefore not accepted.

Conclusion: The goods were held to be articles made of plastic under Item 15A(2) and entitled to exemption under Notification No. 68/71 dated 02-05-1971, in favour of the assessee.

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