TMI Blog1997 (10) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... em vide Sl. No. 32(iii) of the Table appended to Notification No. 53/88-C.E., dated Ist March, 1988 during the period 1-3-1988 onwards. However, if Pre-Preg (Cotton fabrics) are captively used in or in relation to the manufacture of Industrial Laminates (Cotton fabrics reinforced) and on which the duty of excise is payable, the said Pre-Preg (Cotton fabrics) would be exempt from duty under Notification No. 217/86-C.E., dated 2nd April, 1986. Being aggrieved by this order, the appellants have filed the present appeal before us. 2. The facts leading to the above dispute are that the appellants are engaged in the manufacture of Insulators and Laminates. They filed classification list in respect of their products. Classification of only two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The appeal of the Revenue so far as the first item is concerned, is therefore dismissed. 4. The ld. Tax Advisor submitted that in view of the above decision of the Tribunal, their case was fully covered and, therefore, prayed that the appeal may be allowed. 5. Countering the arguments of the ld. Tax Advisor, Shri H.K. Jain, the ld. SDR appearing for the Revenue, submitted that the Apex Court had in the recent past examined a similar issue in the case of CCE, Hyderabad v. M/s. Bakelite Hylam Ltd. [1997 (91) E.L.T. 13] and [ruled] in paragraphs 26 to 30 as under : 26. In the Explanatory Note to Chapter 39 in the Harmonised System of Nomenclature also, it is provided as follows : `Combinations of plastics and materials other than t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try 4818.90/4823.90. CEGAT is not right in classifying these under Entry 4818.90/4823.90. 28. Industrial laminated sheets which are paper-based are used for electrical insulation. Glass epoxy laminates are also used as electrical insulators. The New Tariff Act contains a separate Section XVI which deals, inter alia, with electrical equipment and parts thereof. Chapter 85 which forms part of Section XVI deals with electrical machinery and equipment and parts thereof. Entry 8546 deals with `electrical insulators of any material . There is, therefore, a specific entry in the New Tariff Act dealing with electrical insulator of any material. Under Chapter 39 which deals with plastics and articles thereof, Chapter Note 2(n) which is set out ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the same reason as in the case of decorative laminated sheets. These sheets, therefore, have been rightly classified under the residuary Tariff Entry 68 of the Old Customs Tariff. 30. To sum up, the Tribunal has rightly classified decorative laminates under the Old Tariff Entry 68. The decision of the Tribunal, however, insofar as it classifies decorative laminated sheets under Tariff Entry 4818.90/4823.90 of the New Tariff is set aside and decorative laminated sheets are classified under Tariff Entry 3920.31/3920.37 of the New Tariff. In respect of industrial laminates (paper based) and glass epoxy laminates, the Tribunal has correctly classified these items under Tariff Item 68 of the Old Tariff and under Tariff Entry 7014/8546 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Heading Nos. 3901 to 3914. 10. Therefore, the entire dispute centres round these two Chapter Headings with their sub-headings for the purpose of classification. The Department s main contention was that these are sheets of plastic and since they were sheets of plastic, they are fully covered by the specific description of the articles under Chapter Heading 39.20. The contention of the appellants was that they are composite articles of plastic and other materials and, therefore, they will be covered by Chapter Heading 3926. 11. Let us now examine as to what are the other sub-headings under Chapter Headings 3920 and 3926. Chapter Heading 3920.37 reads : 3920.37 - Rigid laminated . Chapter sub-heading 3926.90 reads : 3926.90 - Other. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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