TMI Blog2005 (9) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... 85.46 of the Tariff. The matter was referred to the Larger Bench to reconsider the above decision of the Tribunal. 2.The respondent in the present case are manufacturing Mica Separator sheets/Mica moulding sheets and Mica Vee Cone and claimed the classification under Heading 6807.00 of the Central Excise Tariff. The adjudicating authority accepted the classification as claimed by the present respondent in respect of Mica separator sheets and Mica moulding sheets. However, Mica articles were classifiable under Heading 8546.00 of the Tariff. Revenue challenged the order passed by the adjudicating authority in respect of classification of Mica separator sheets and Mica moulding sheets. The Commissioner (Appeals) dismissed the appeal filed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of moulding of the sheets and these Mica Vee Cones are to be classifiable under Chapter 85 of the Tariff Act. This classification has been accepted by the respondent. 5.The contention of the respondent is that the ratio of the decision of the Hon'ble Supreme Court in the case of Bakelite Hylam Ltd. (supra) is not applicable to the facts of the present case. In the present case, the sheets in question Mica separator sheets/Mica moulding sheets are cleared as such in sheets form and subsequently they are cut to size and consolidated through process of compaction by means of pressure and heat so as to eliminate voids, therefore, the sheets as such cannot be considered as insulator classifiable under Heading 85 of the Tariff. The sheets are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ets having insulating properties and are used as electrical insulator. It cannot be taken out of the electrical insulators only because they have to cut in the requisite shape or required to be punched in that. Further we find that this decision has been followed by the Hon'ble Supreme Court in the case of CCE v. Wood Polymers Ltd. - 1998 (97) E.L.T. 193. The arguments raised before us are similar to the argument raised by the Revenue in the case of Bakelite Hylam Ltd. (supra) and the arguments were rejected by the Hon'ble Supreme Court on the ground that process undertaking on the sheets does not amount to manufacture. In the present case also is the same situation. In view of the above decision of the Hon'ble Supreme Court, we find that M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id void free material. This process is called seasoning. During this process, the material undergoes chemical change through chemical cross-linking that hardens it and makes it capable of moisture resistance. It imparts necessary electrical heat resistance property. Item is also coated with varnish by the vacuum pressure impregnation process and heat cured in high temperature oven. The appellants have emphasised that the stage at which they clear the sheets, mica is loosely held and only after undergoing multiple cycles of heat and pressure, cross-linking and thermo setting take place. It is also stated that di-electric examination would show the sheets to be unsuitable for electrical insulation. 10.Insulators are used for the fixing, sup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sification of laminated sheets having insulating properties as classifiable under Chapter 85, the mica sheets having insulating properties would also be so classifiable. I am afraid, no such broad rule of classification is to be read into the aforesaid judgment so as to treat all insulating materials as electrical insulators. That judgment was rendered upon a finding that after cutting to size and making holes for fixing, the sheets in question would be usable as insulators. No process of conversion of the laminated sheets into electrical insulators was required to be done. The difference was only about form. The Court observed that laminated sheet in question is a hard rigid sheet which has impregnable resistance and is unaffected by heat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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