Classification of lacquered polyester films: coating did not alter identity, so the goods fell under the polyester film tariff entry.

Lacquered polyester films were held to retain their identity as polyester films where the coating was only a physical lacquer application and did not create a new product. The classification dispute turned on the manufacturing process, test reports, expert affidavit evidence, and the amended wording of Item 15A(2), which covered films whether lacquered or not. On that basis, the goods were treated as classifiable under Item 15A(2) of the Central Excise Tariff rather than Item 68, and the Revenue's challenge failed.

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Issues: Whether lacquered polyester films manufactured by the assessee retained their identity as polyester films and were classifiable under Item 15A(2) of the Central Excise Tariff, or had become a new product classifiable under Item 68.

Analysis: The products were examined in the light of the manufacturing process, the test reports, the affidavit of Dr. S.P. Potnis, and the departmental letter and trade notice indicating the department's own understanding after the amendment of Item 15A(2). The lacquered films were found to be polyester films coated with lacquer and not goods that had lost their identity by reason of a mere physical coating process. The wording of Item 15A(2) as amended covered films whether lacquered or not.

Conclusion: The goods were correctly classifiable under Item 15A(2) of the Central Excise Tariff and not under Item 68; the Revenue's appeal failed.

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