2007 (7) TMI 131 - AT - Central Excise

Tribunal classifies goods under wrong category, Board Circular No. 8/87 cited

The Tribunal classified the impugned goods, Intaf Poly Glass Armature and Narrow Tape Fabrics, under Heading 70.14 instead of Chapter 85, based on their ... “Intaf Poly Glass Armature and Narrow Tape Fabrics” – Impugned goods being in running length and not in form of electrical insulator fittings, would remain with in Chapter 70 and would be classifiable under Heading 70.14 Issues: Classification of goods under Chapter 70 or Chapter 85Analysis:The appellants described the impugned goods as Intaf Poly Glass Armature and Narrow Tape Fabrics, consisting of warp threads without weft assembled by adhesive. A chemical test report confirmed the samples as non-woven narrow fabrics made of glass yarn bonded with adhesive. The Board's Circular No. 8/87 clarified that glass fabric reinforced laminates should be classified under Heading 70.14, excluding electrical insulators or fittings under Chapter 85. The impugned goods, made from glass yarn bought externally and supplied in running lengths, were deemed to fall under Chapter 70, not being electrical insulators or fittings. The Tribunal noted the support from similar goods' classification under Chapter 70 in imports and those manufactured by M/s. Newtex in Nasik Jurisdiction. Consequently, the impugned goods were classified under Heading 70.14, leading to the setting aside of the initial order and allowing the appeal.Conclusion:The Tribunal's decision hinged on the interpretation of the Board's Circular and the nature of the impugned goods, ultimately concluding that they were appropriately classifiable under Chapter 70. The reliance on precedents and the distinct characteristics of the goods played a pivotal role in the classification determination, leading to the appeal's success.