1990 (3) TMI 153

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....cal solution which the department has classified as resin solution (phenol-formaldehyde solution) and classified under Chapter 39 of the Schedule, here-in-after referred to as the said schedule, to the Central Excise Tariff Act, 1985 (5 of 1986) to obtain resin impregnated paper. These impregnated kraft paper sheets are used as core paper. Similarly, decorative/printed/design paper which is also duty paid is impregnated with a chemical solution which, the department has classified as melamine resin solution under Chapter 39 of the said schedule. Likewise, tissue paper is also impregnated with melamine resin solution. Depending upon the thickness of paper based laminated decorative sheets to be manufactured, required number of impregnated sheets of kraft paper, one sheet of impregnated decorative/printed/design paper and one sheet of impregnated tissue paper are laminated/compressed together in one operation in a hydraulic press applying pressure and heat but without addition of any other ingredient to make a laminated sheet and during the process in hydraulic press the resin passes through the cores of paper and acts as a binder between the said paper sheets. The said product is so....

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....Cellulose. 3920.21 - Film, of thickness not exceeding 0.25 millimetres. 39.20 Other plates, sheets, film, foil and strip, of plastics, non-cellular, whether lacquered or metallised or laminated, supported or similarly combined with other materials or not - of polymers of vinyl chloride. 3920.11 - Rigid plates, sheets, film, foil and strip. 3920.12 - Flexible plates, sheets, film, foil and strip. - Of regenerated Cellulose. 3920.21 - Film, of thickness not exceeding 0.25 millimetres. 8. The order of the Assistant Collector being confirmed by the Collector of Central Excise, the assessees have filed this appeal to the Tribunal. 9. E/A No. 3439/89-C has been filed against the order of the Collector of Central Excise dated 31-7-1989 classifying the appellants' products namely (a) decorative plastic laminated sheets (paper based), (b) cotton fabrics based laminates, and (c) paper based insulators electrical grade under sub-heading 3920.37. 10. The Asstt. Collector classified items (a) & (b) under sub-heading 3920.37 and approved the classification of item (c) under sub-heading 8546.00. The Collector Central Excise, in the appeal filed by the assessees against the classific....

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....was 70% and resin 30% of the finished product by weight. The paper formed core of the sheet and plastic was a binding Agent. It was held by the Tribunal that the goods were correctly classifiable under Tariff Item-68 and not Item 15A ibid. It has been argued before us by the learned S.D.R. for the Revenue that a product combined with other materials was not classifiable under erstwhile Tariff Item 15A and hence the aforesaid two decisions are not applicable to the facts of the present case as, under the new Tariff under the Central Excise Tariff Act, 1985, specified articles of plastics combined with other materials are classifiable under Heading 39.20. This argument should fail in view of the Chapter Note 1(f) of Chapter 48 of the new Tariff. According to this Chapter Note, paper reinforced stratified plastic sheeting, or one layer of paper or paper-board coated or covered with a layer of plastic is excluded from Chapter 48 if plastics constitute more than half the total thickness. In the case before us, plastics constitute 30 to 40% only, i.e. less than half of the finished product by thickness (as well as by weight). Classification of the product under Chapter 39 is thus ruled o....

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....ified under Heading 4818.90 till 28-2-1988 and under Heading 4823.90 on and after 1-3-1988. 14. The issue of classification of industrial laminates having insulation properties has been settled by the decision of this Tribunal in the case of CCE, Ahmedabad v. Metro Wood Engg. Works [1989 (43) E.L.T. 660 (Tri.) = 1989 (22) ECR 369]. The Tribunal, held that they are classifiable under Heading 8546.00 of the CET Act 1985 as "Electrical Insulators of any material". The ratio of that decision applies on all fours to the paper based insulators electrical grade which is one of the products whose classification is in dispute in these appeals. Applying the ratio of the case supra, we hold that the paper based insulators electrical grade are correctly classifiable under Heading 8546.00. 15. Regarding the classification of cotton fabric based laminates in E/A 3439/89-C the Department has classified them under Heading 3920.37 which reads as follows :- "39.20 - Other plates, sheets, film, foil and strip, of plastics, non-cellular, whether lacquered or metallised or laminated, supported or similarly combined with other materials or not. 3920.37 - Rigid, laminated." In E/A 3303/89-C, cott....