Electrical insulator classification turns on insulating properties, not mere cutting or shaping before use.

Mica separator sheets and mica moulding sheets, cleared in sheet form but cut, layered, compacted and heat-treated before use, were held by the majority to remain classifiable as electrical insulators under Chapter 85 of the Central Excise Tariff Act, 1985. The majority applied the principle that goods with insulating properties do not lose Chapter 85 classification merely because they require cutting, shaping or similar preparation before use, and treated such processing as insufficient to create a different product. A dissenting member considered them mica sheets under Heading 6807 until further processing, but the referred question was answered in favour of Chapter 85 classification.

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Issues: Whether mica separator sheets and mica moulding sheets, cleared from the factory in sheet form but subjected to cutting, layering, compaction, heat treatment and related processes before use, are classifiable as electrical insulators under Chapter 85 of the Central Excise Tariff Act, 1985 or as other articles of mica under Heading 6807.

Analysis: The majority held that the goods, though removed in sheet form, were intended for use as insulators and had insulating properties. It relied on the principle that mere cutting to size or punching holes does not by itself alter classification where the product is already capable of being used as an insulator. The majority considered the processes described by the manufacturer but concluded that these did not take the goods out of Chapter 85, especially in light of the prior view taken in the earlier Tribunal decision and the Supreme Court's treatment of similar insulating sheets.

Conclusion: The mica separator sheets and mica moulding sheets are classifiable under Chapter 85 of the Central Excise Tariff Act, 1985, in favour of Revenue.

Ratio Decidendi: Goods having insulating properties and used as electrical insulators are classifiable as electrical insulators under Chapter 85 even if they require cutting or shaping before use, and mere such processing does not amount to manufacture of a different product.

Concurring Opinion: One Member agreed with the majority and held that the question referred should be answered in the same manner, supporting classification under Chapter 85.

Dissenting Opinion: One Member held that the goods, in the condition in which they left the factory, remained mica sheets classifiable under Heading 6807 and did not become electrical insulators until after further processing, and therefore should not be classified under Chapter 85.

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