TMI Blog1995 (6) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... turers of articles of fibre glass such as pipes and fittings, storage tanks, fume exhaust systems, tank covers, chimney and other tailor-made items against specific orders from their customers. These items are manufactured by moulding plastic sheets like PVC/Polypropylene/Polyethylene and on these layers of fibre glass are laid and coated with resins. During the relevant period the respondents were clearing these goods on payment of duty at the rate applicable to Chapter 39. The Department was of the view that the items merit classification under Chapter Heading 70.14 and accordingly issued show cause notices periodically covering the period from 1-8-1989 to 23-7-1991 on the ground that Chapter Heading 70.14 would cover glass fibres (includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irk Othmer (pages 968 969) and explained nature to the composite of material submitting that reinforced plastics are combinations of fibres and polymeric binders or matrices that form composite materials. The combination of strong fibres and synthetic polymers to form reinforced plastics and laminated derives from several basic considerations of material science : the inherent strength of fine fibres, the wetting requirement for adhesion, and the ease of the liquid-solid phase a change by synthetic polymers. The reinforced plastics are used very widely in chemical applications, such as pipes, tubes, tanks, hoods, ducts, flues, fittings, and general hardware. He said that Chapter Heading 70.14 covers glass fibre and articles thereof whethe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents have filed a classification list for the goods viz. (1) pipes and fittings, (2) tanks more than 300 ltrs. capacity - parts of tank - cell tops etc., (3) parts of machineries, parts of compressors and (4) gratings. Since there was no finding by the Collector (Appeals) with reference to Serial Nos. 3 4 and no appeal filed by the Department in respect of those items, the dispute cannot be enlarged at this stage and controversy revolves around Item No. 1 pipes and fittings and 2. tanks of more than 300 ltrs. capacity. He said that they are not articles of fibre glass as stated by other side but the articles are made of plastic reinforced by fibre glass (FRP) and it cannot be called as glass fibres or fibre glass as understood in commerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry 70.14 refers to glass fibres and articles thereof and articles thereof is too wider and in general, accordingly Chapter 39 is more specific with reference to the items in question and it should be preferred to Chapter 70. He submitted that either of predominance of weight or value of material in the product or of essential character and in view of the Board s Circular No. 7/90-CX-3, dated 23-2-1990, and particularly with reference to Rule 3 of Interpretative Rules in sequence in respect of composite material, the items are to be assessed under Chapter 39. He relied upon the latest decision of the Supreme Court in the case of Fenner (India) Ltd. v. Collector of Central Excise, Madurai reported in 1995 (77) E.L.T. 8 (S.C.) wherein it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plastics and articles thereof and Chapter 70 concerns with glass and glassware. It was contended on behalf of the Revenue that merely by reason of predominance of plastics, the items in question cannot be classified under Chapter 39. In other words it is an admitted position that plastic is in dominance by weight and Collector (Appeals) has given a categorical finding that these articles are known as articles of plastics in the market. The relevant finding portion of the Collector (Appeals) is reproduced as under :- From the admitted facts of this case, no doubt plastic is in dominance by weight, and the impugned articles are also known as articles of plastics in the market. From the write-up given by the appellants, it is observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 35% 6. There is force in the arguments advanced on behalf of the respondents that phrase whether or not would illustrate those articles of glass fibre which are coated or laminated or covered with plastics or varnish and not the plastic article which is coated with glass fibre to classify under Heading 70.14. Respondents also drew our attention to the Circular issued by the Board No. 7/90-CX-3, dated 23-2-1990, which reads as under :- Products made out of combination of plastics and material other than textiles. - The classification of products made out of combination of plastic materials, other than textile, has been explained in the Explanatory Notes of HSN to Chapter 39 on page 554. Under the heading combination of plastic and ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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