2000 (12) TMI 508 - AT - Central Excise

Classification dispute resolved: aluminium sheets laminated with paper and resin ruled under Heading 76.07

The case involved the classification of glossy aluminium sheets laminated with kraft paper and resin under tariff headings 7606.10 and Chapter 39. The ... Classification Issues: Classification of glossy aluminium sheets laminated with kraft paper and resin under tariff headings 7606.10 and Chapter 39Classification under Heading 7606.10 vs. Chapter 39:The central issue in this case was the classification of glossy aluminium sheets laminated with kraft paper and resin. The manufacturer initially classified the product under Heading 7606.10 of the tariff, which covers aluminium plates, sheets, and strips. However, the Department argued that the goods should be classified under Chapter 39 as a plastic manufacture, contending that Heading 70.06 specifically pertains to aluminium sheets backed with other materials but not laminated with other materials. The Assistant Collector upheld the Department's classification.Appeal and Classification under Chapter 76:The manufacturer appealed the Assistant Collector's decision, and the Collector (Appeals) considered note I(d) to Chapter 76, which states that products classifiable under Heading 76.06 remain in it even if perforated, corrugated, polished, or coated, as long as they do not assume the character of products from another heading. The Collector confirmed the manufacturer's classification, which was challenged by the Department.Character and Use of the Product:The Department argued that the product's essential character derived from plastic, emphasizing that the product's use differed from that of aluminium sheets. The product was primarily used as a decorative facade on interior surfaces, utilizing the aluminium's exterior surface. The product's literature indicated various colors and patterns, showcasing its use in offices and shops. The product's properties allowed easy cleaning with a soap solution and resistance to food, beverages, and household chemicals.Contribution of Materials and Classification under Heading 76.07:The Tribunal noted that the Explanatory Notes did not provide clear guidance on the classification. The Department's reliance on note 1(d) to Chapter 39 was rejected. The Tribunal concluded that the essential characteristics of the product were a result of the combined contribution of aluminium, paper, and plastic. As all three materials were essential for the product's intended use, the Tribunal applied note 3(c) for classification, leading to the classification under Heading 76.07.Conclusion:Ultimately, the appeals were dismissed, affirming the classification of the glossy aluminium sheets laminated with kraft paper and resin under Heading 76.07.