TaxTMI 
TaxTMI 
TaxTMI 
1998 (9) TMI 594
X X X X Extracts X X X X
X X X X Extracts X X X X
....cts. The respondents are engaged in the manufacture of the product known as 'paper based plastic laminated sheets - electrical insulator'. In the classification list the respondents had classified their goods under "electrical insulators of any materials" (85.46) and described the goods "as electrical grade, industrial insulation boards, manufactured from paper by treating, impregnating and layers of such impregnated sheets, laminated/bonded together by hearing and printing in hydraulic press" in the classification list dated 22-9-1986. The goods were sheets of various sizes between 244 x 122 cms to 122 x 122 cms. The department's case before us is that the product manufactured by the respondents are not electrical insulators or insulating fittings covered under Chapter 85 but goods classifiable under sub-heading 3920.31 coming within the category of plastic laminated sheets, made of plastic and articles thereof. Ld. DR stated that insulators are used to insulate conductor from earth or from any other conductor and insulating material has been separately defined as material usually of vitieous or resinous nature which offered high resistance to the passage of electric current. He d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion in this case, ld. DR pleaded for the remand of the matter to the original adjudicating authority for the correct determination of the classification on the basis of the Test Report in the light of the submissions made. 4. The ld. counsel appearing for the respondents on the other hand submitted that the impugned order had correctly decided the issue by classifying the product as electrical insulators under Heading 8546.00. He relied on the Tribunal decision in Collector of Central Excise v. Metrowood Engineering Works, 1989 (43) E.L.T. 660 (Tribunal) in which the Tribunal had held that industrial laminates are electrical insulators having insulating properties and minor fabrication like punching or drilling holes on the sheets would not alter their character and would be correctly classifiable under Heading 8546.00. The Tribunal had also held that Chapter Note 2(n) to Chapter 39 excluded electrical insulators from the said chapter. It had also rejected the contention based on the fact that IS 1885 had shown insulating material and insulators as separate items. 5. We have considered the submissions made by both the sides. We find that the Tribunal's decision cited o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....SUCH IMPREGNATED SHEETS, LAMINATED/ BONDED TOGETHER BY HEARING AND PRINTING IN HYDRAULIC PRESS, IN FOLLOWING SIZES :- 1. 244 x 122 cms. 2. 153 x 092 cms. 3. 064 x 064 cms. 4. 122 x 122 cms. The Assistant Collector has in his order mentioned that the goods have been described before him as paper based "plastic laminated sheets - "ELECTRIC INSULATORS"." The whole issue revolves around the question as to whether such an item was required to be considered as an article of plastic classifiable under Chapter 39.20 or as an electrical insulator classifiable under 85.46. The two rival entries read 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. 85.46 ELECTRICAL INSULATORS OF ANY MATERIAL. It is noteworthy that Chapter 85 covers ELECTRICAL MACHINERY AND EQUIPMENT AND PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS, AND PARTS AND ACCESSORIES OF SUCH ARTICLES and a perusal of the Chapter as a whole read in the light of the Chapter notes shows that it covers articles which have assume....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mbly). Usually there is a relation between the size of the insulator and the voltage (large for high voltages, smaller for low voltages). Similarly the shape of the various types of insulators is influenced by electric, thermic and mechanical considerations. The external surface is very smooth in order to prevent the formation of deposits of non-insulating materials, such as water, salts, dusts, oxides and smoke. Insulators are often given bell, accordion, petticoat, grooved, cylinder or other shapes. Certain types are constructed in such a way that when in position they may contain oil to prevent contamination of the surface by conducting materials. Insulators may be made of any insulating material, usually very hard and non-porous, e.g., ceramic material (porcelain steatite), glass, fused basalt, hardened rubber, plastics or compounded insulating materials. They may contain fixing devices (e.g. metal brackets screws, bolts, clips, laces, slings, pins, cross pieces, caps, rods, suspension or carrying clamps). Insulators equipped with metal horns or guard shields or other devices to form lightning arresters are excluded (Heading 85.35). Insulators are used on outdoor cables e.g.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eshold as time barred and there is no finding on merits. The Tribunal's order in the case of Pratap Rajasthan Copper Foils and Laminates Ltd. - 1989 (44) E.L.T. 775 is also not of much help as in that case the Tribunal observed that a plastic sheet as such does not come into existence in the process and the article was a paper based or glass fabric based industrial item treated as copper clad laminates classifiable as copper foil and the case was therefore distinguishable on facts. Of course the Tribunal's order in the case of Metro Wood Engg. Works (supra) supports the respondent's view in the matter but with due respects, I difer from the same in view of the reasons recorded above. The paper laminated sheets which according to the respondents were of electrical grade and meant for insulation purposes, could only be considered as materials for utilisation in manufacture of insulators but could not be considered as insulator or parts thereof in the absence of any evidence to that effect. I, therefore, consider that in view of the Tribunal's order in the Metro Wood case and for the reasons recorded above the matter was required to be referred to a Larger Bench. Sd/- (S.K. Bhatnaga....