Plastic-impregnated glass tapes denied concessional duty where polyester resin was treated as falling within plastics

Glass banding tapes impregnated with semi-cured polyester resin were treated as polyester resin impregnated fabric and, on the materials considered, as falling within the broader concept of plastics. Because the exemption applied only to goods impregnated, coated, covered or laminated with plastic or varnish, the tapes could not be excluded merely because the impregnation was by resin. They were therefore regarded as plastic impregnated and not eligible for the concessional duty rate under the notification.

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Issues: Whether glass banding tapes impregnated with semi-cured polyester resin were eligible for the concessional rate of duty under Notification No. 52/86-C.E. dated 10-2-1986 as goods not covered by plastic impregnation.

Analysis: The imported tapes were found to be polyester resin impregnated fabric intended for use as insulating armor tapes. Polyester resin was treated as a type of synthetic resin and, on the materials relied upon, as falling within the broader concept of plastics. Since the relevant exemption covered only goods impregnated, coated, covered or laminated with plastic or varnish, the goods could not be excluded from that description merely because the impregnation was by resin. Support was also drawn from the earlier view that resin is covered by the general term plastic.

Conclusion: The tapes were held to be plastic impregnated and were not entitled to the concessional rate under the notification.

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