1999 (5) TMI 369 - AT - Customs

Tribunal classifies goods as flame retardant polyester insulation tape under Heading 8546.00

The Tribunal classified the goods as flame retardant polyester electrical insulation tape under Heading 8546.00, agreeing with the appellant's argument ... Classification of goods Issues: Classification of goods as flame retardant polyester electrical insulation tape under Heading 8546.90 or Heading 3919.90In this case, the primary issue for consideration was the classification of goods described as flame retardant polyester electrical insulation tape. The importer claimed classification under Heading 8546.90, while the Department ordered them to be classified under Heading 3919.90. The dispute revolved around whether the goods should be categorized as electrical insulators or not.The appellant argued that the goods had the property of electrical insulation, emphasizing that the goods could be used in their imported size to provide insulation in transformer coil windings. Reference was made to previous legal decisions, including the Supreme Court's ruling in C.C.E. v. Bakelite Hylam Ltd., to support the classification under Heading 8546.00. Additionally, trade notices from various collectorates also supported the classification under Heading 8546.00.On the other hand, the departmental representative contended that the goods, in their imported form, could not be used as insulators and cited previous tribunal decisions to support the argument that the composition of the goods should determine their classification. The representative argued that plastic tapes in running length should be classified under Heading 39 due to their multiple uses.The Tribunal analyzed the characteristics of the goods, noting that they were made of polyester and had properties of electrical insulation. However, the goods required further cutting and packing before being used as insulators. The Tribunal referred to previous decisions, such as Chetna Polycoats Pvt. Ltd. v. C.C.E., to determine the classification of goods generally known as insulation tape.Further, the Tribunal discussed the relevance of previous legal judgments, such as in C.C. v. Hydranautics Membrane (India) Ltd. and Raja Radio Co. v. C.C., to establish principles for classification under specific headings. The Tribunal emphasized that the goods did not necessarily have to be parts of machinery to be classified under Heading 8546.Ultimately, the Tribunal concluded that the goods were classifiable under Heading 8546 of the tariff, considering that they were specifically intended for insulation purposes and had not been alleged to have alternative uses. The appeal was allowed, the impugned order was set aside, and consequential relief was granted.