2009 (5) TMI 335

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....f the impugned goods as insulating paper falling under Sub-Heading No. 4823.90, whereas the Department is seeking to classify the same as electrical insulators falling under Heading No. 85.46 of Central Excise Tariff Act, 1985. 4. Shri J.P. Khaitan, learned Senior Advocate appearing for the appellant-assessee argues:- (i) that the impugned goods are nothing but special papers which are supplied in reels and are manufactured from cellulosic pulp. In the manufacture of such paper, the water used is deionized to ensure higher insulating property; (ii) that the impugned goods satisfy the Indian Standard: 9335 which prescribes specification for cellulosic paper for electrical purposes; (iii) that under Government of India, Notification No. ....

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....ified under Chapter 85 by both these decisions and hence, in the present case, the impugned goods should also be classified under Chapter 85 as insulators. 6. After hearing both sides and perusal of the relevant IS Specifications, cited case laws and the relevant tariff entries, we find that the impugned goods are a kind of special paper. The product which was dealt with by the Hon'ble Supreme Court in the case of Wood Polymers (supra) was paper based laminated sheets and paper based insulators of electrical grade. In the present case, the impugned goods are not paper based product but paper itself. Hence, in our considered view, the Hon'ble Supreme Court's decision in the case of Wood Polymers (supra) is not applicable to the present case....

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....ors. In our view, a distinction has to be made between insulating material and insulators. Just because special papers in question have insulating properties and are capable of being used as insulating material, these cannot be classified as insulators. We also find that only insulators are excluded from being classified under Chapter 48 as per the Explanatory Notes to the HSN but not insulating material. Moreover, the cited Notification No. 64/88-C.E., dated 1-3-88 and Notification No. 204/88-C.E., dated 13-12-88 - both issued by the Government of India earlier, have classified such paper under Chapter 48. As pointed out by the learned Senior Counsel, the subsequent 8-digit tariff also has a special entry under Sub-Heading 4810 39 10 for s....