Classification by manufactured character: mica-laminated resin product treated as an insulator because later processing did not create a new commodity.

Goods manufactured from mica laminated with resin were treated as classifiable as an insulator under Heading 85.46 because the product had insulating properties in its existing manufactured form. The view that it became an insulator only after heat and pressure processing was rejected as unsupported by evidence. Classification depends on the character of the goods as manufactured, and later processing will not change that classification unless it causes a chemical change and creates a new commodity. On that basis, the departmental appeal succeeded and the duty liability was restored.

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Issues: Whether the product manufactured from mica laminated with resin was classifiable as an insulator under Heading 85.46.

Analysis: The product was found to possess insulating properties in its existing form. The contention that it could function as an insulator only after being subjected to heat and pressure was unsupported by evidence. In the absence of a chemical change resulting in emergence of a new commodity, the later processing had no bearing on classification.

Conclusion: The product was classifiable under Heading 85.46, and the departmental appeal succeeded.

Final Conclusion: The order of the Commissioner (Appeals) was set aside and the Assistant Collector's order restoring duty liability was upheld.

Ratio Decidendi: For classification, the relevant test is the character of the goods as manufactured; subsequent processing does not alter classification unless it brings about a chemical change creating a new commodity.

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