TMI Blog1988 (7) TMI 175X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 8546.00, of the schedule to the Central Excise Tariff Act, 1985 (CET, 1985, for short) as claimed by the appellants or under Heading No. 39.19, sub-heading 3919.00, of the schedule as held by the lower authorities. 3. The two headings are reproduced below :- Heading 39.19, sub-heading 3919.00 Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls. Heading 85.46, sub-heading 8546.00 Electrical Insulators of any material. 4. We have heard Shri V. Sridharan, Advocate, for the appellants and Shri C.V. Durghayya, Departmental representative, for the respondent. 5. The dispute arose in relation to classification list No. 774/86, effective from 24.4.1986, filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r hand, sub-heading 3919.00, squarely covers the goods. The fact that the product has, apart from self-adhesive properties, also electrical insulation properties does not alter the classification under Chapter 39 of the Schedule. Several authorities cited by the appellants in support of their claim were, according to the Assistant Collector, not applicable since they were in the context of the Central Excise Tariff Schedule obtaining prior to the introduction of the C.E.T. 1985. The previous schedule was not based on the Harmonised system. In appeal, this order was upheld by the Collector of Central Excise (Appeals) by his impugned order dated 30.10.1987. 6. It is no doubt true that the schedule to Central Excise Tariff Act, 1985, is a fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wer. Till its deletion by the Finance (No. 2) Act of 1977, the previous schedule had another entry item No. 59 - specifically for electric insulation tapes. The entry read thus : Electric insulating tapes, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power. The Central Board of Excise and Custom had occasion to go into the question of classification of electric insulating tapes consequent on deletion of item 59. The Board issued a tariff advice No. 70/81 dated 28.7.1981 to the effect that electrical insulating tape would be classifiable under the residual entry - item No. 68 - and not under Tariff Item No. 60 for adhesive tapes. This reflects the understanding of the Board itsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods goes. In our opinion, having regard to the words employed then and now, the interpretation put on item 60 CET would be applicable to the present heading also unless, as noted earlier, the section notes, chapter notes, and the rules of interpretation dictate otherwise. 10. Statutory note 2 (a) to Chapter 39 provides that the chapter does not cover articles of section XVI (machines and mechanical or electrical appliances). If, therefore, electrical insulating tapes fall within the scope of section XVI (under which chapter 85 falls), they would not fall under Chapter 39. And, as already noted, the decision of this Tribunal, as also the understanding of the Board (though with reference to the previous schedule), was that electrical i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its in support of their contentions. One was that of Shri B.K. Khanna, the factory manager of the appellant company, which inter alia stated that customers do not buy the subject goods for use as ordinary adhesive tapes but exclusively for use as electrical insulation tapes. It further stated that electrical insulating tapes can be purchased only from dealers in electrical items. They would not be available from stationery or grocery shops. The second affidavit is that of Shri J.P. Kaushik, the appellants technical manager testifying to the fact that the subject goods were used only for electrical insulation purposes and not for any other purpose. The department has not placed on record any material contradicting these averments and suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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