TaxTMI 
TaxTMI 
1999 (1) TMI 103
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....n tapes : 1. Electrical Insulating tapes 2. Polyester Composite Insulating paper 3. Alkeyed/phenolic/epoxy treated insulating paper. 4. Varnished cotton cloth for insulation. 5. Varnished glass fabric for electrical insulation. 6. Varnished silk fabric for electrical insulation. 2. The AC by show cause notice issued had intended to classify item No. 1 above under Heading 8546.00 while Items No. 2 & 3 to be classified under sub-heading 4823.19 and items 4, 5 & 6 under sub-heading 3920.31. There was already approved classification list and the show cause notice was issued to re-open the classification in the manner indicated above. However, no specific reasons were given for the re-classification. The assessee had challenged the p....
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....ticle made from materials which have electrically insulating properties can be appropriately described as an insulator. Further, the end use of all these items are the same i.e. as Electrical insulators only in various industries, which fact has also not been disputed by the applicant. The Tribunal in their above decision has also observed that according to Rule 3(a), "The heading which provides the most specific description shall be preferred to headings providing of a more general description" and even otherwise in a taxing statute where two interpretations are possible, the interpretation which is favourable to the assessee should be taken. 6. In view of the foregoing, I conclude that all the items under dispute should be rightly classi....
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....ned DR stressed the case of the department and relied upon the judgment cited by the Revenue in the grounds of appeal. 7. On the other hand the learned Advocate Shri AKJ Nambiar, filed detailed written submission and also the case laws to show that the issue is no longer res integra and the matter is covered by the following judgments : 1. C.C.E. v. Bakelite Hylem Ltd. reported in 1997 (91) E.L.T. 13 (S.C.). 2. C.C.E. v. Johnson & Johnson Ltd. reported in 1998 (101) E.L.T. 510 3. C.E. v. Wood Polymers Ltd. reported in 1998 (97) E.L.T. 193 (S.C.) 4. Chetna Polycoats (P) Ltd. v. C.C.E. reported in 1988 (37) E.L.T. 253. 8. The learned Counsel also pointed out that the show cause notice did not give any reason for the re-classif....
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.....L.T. 485 (S.C.). 3. C.C.E. v. KWH Heliplastics Ltd. reported in 1998 (97) E.L.T. 385 (S.C.). 4.  C.C. v. Kumudam Publications (P) Ltd. reported in 1997 (96) E.L.T. 226 (S.C.). He further submitted that the items are known in the trade as electrical insulators and this is borne out by the literature and the ISI specifications pertaining to the items in question which clearly speak of these items as electrical insulators. He also relied upon the following judgments which lay down that the general use in the trade must form the basis for classification : 1. Atul Glass Industries Ltd. & Anr v. C.C.E. reported in 1986 (25) E.L.T. 473 (S.C.) 2. Metagraphs Pvt. Ltd. v. C.C.E. reported in 1996 (88) E.L.T. 630 (S.C.) 3. Chemicals an....
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....has not produced any other evidence to controvert this finding. Further, even in terms of the interpretative Rule 2(a) an item which has acquired the essential characteristics of the final product of a complete or finished goods is required to be classified only under the main heading. In this case the goods are known in the market as electrical insulators and they satisfy the ISI specification. In this view of the matter, the classification of the items under Heading 8546.00 is totally justified and is required to be confirmed. 10. Further, we notice that the plea taken by the assessee that the department cannot again seek change of the classification in this appeal is justified and is required to be upheld in the light of the judgme....