1985 (8) TMI 367 - AT - Central Excise

Summary

Issues Involved:
1. Correct classification of rigid plastic laminated sheets and boards under the Central Excises and Salt Act, 1944.
2. Applicability of Item 15A(2) versus Item 68, CET.
3. Interpretation of "insulators" and "insulating fittings" under Explanation II(b) to Item 15A.

Issue-wise Detailed Analysis:

1. Correct Classification of Rigid Plastic Laminated Sheets and Boards:
The primary issue in the appeal was the classification of rigid plastic laminated sheets and boards, manufactured under the trade names "Hylam" and "Hyglas," under the First Schedule to the Central Excises and Salt Act, 1944 (CET). The appellants argued for classification under the residual heading - Item 68, CET, while the lower authorities classified them as "articles of plastics" under Item 15A(2), CET.

2. Applicability of Item 15A(2) versus Item 68, CET:
Item 15A, CET, as it stood at the material time, included "articles made of plastics, all sorts, including tubes, rods, sheets, foils, sticks, other rectangular or profile shapes, whether laminated or not, and whether rigid or flexible, including layflat tubings and polyvinyl chloride sheets, not otherwise specified." The appellants contended that their goods were excluded from Item 15A(2) by Explanation II(b), which excluded "electrical insulators or electrical insulating fittings or parts of such insulators or insulating fittings." The Assistant Collector initially permitted the goods to be cleared under Item 68 on a provisional basis but later classified them under Item 15A(2) after adjudication. The Appellate Collector upheld this classification, stating that the goods were only raw materials and could become insulators or fittings only after further processing.

3. Interpretation of "Insulators" and "Insulating Fittings" under Explanation II(b) to Item 15A:
The appellants argued that their goods were insulators or insulating fittings and thus excluded from Item 15A by Explanation II(b). The Tribunal examined various definitions and technical literature to determine whether the goods could be classified as insulators. The Tribunal found that the laminated plastic sheets had electrical insulating properties and could be appropriately described as insulators. The fact that minor fabrication, such as drilling, was required did not detract from this classification. The Tribunal concluded that the goods qualified as insulators and were, therefore, excluded from Item 15A by virtue of Explanation II(b).

Conclusion:
The Tribunal set aside the impugned order, granting consequential relief to the appellants. The rigid plastic laminated sheets and boards were classified under Item 68, CET, as they were deemed to be insulators and thus excluded from Item 15A by Explanation II(b).