TMI Blog2003 (9) TMI 488X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff Act as claimed by the Appellants or under sub-heading 3920.30 of the Tariff as classified by the Commissioner, under the impugned Order. 2.1. Shri L.P. Asthana, learned Advocate, submitted that whenever electrical signals are transmitted through Jelly Filled Telecommunication Cables (JFTC), electromagnetic field is generated around the cable which causes interference in electrical signals being transmitted through other neighbouring cables and distorts the signals; that JFTC cables are provided with metallic covering over the cable core to prevent distortion of electrical signals by surrounding electromagnetic fields; that Department of Telecom has specified that this screening material should be aluminium foil of 0.2 mm thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Bench of the Tribunal in the case of Hindustan Packaging Co. Ltd. v. CCE, Vadodara, 1995 (75) E.L.T. 313 (T). It has been held by the Tribunal by majority that aluminium foil backed by paper and polyethylene is classifiable under sub-heading 76.06; that the appeal filed against the decision was withdrawn by the Appellants as reported in 1998 (97) E.L.T. A139. Reliance has also been placed on the decision in the case of India Foils Ltd. v. CCE, Calcutta-II, 1998 (99) E.L.T. 101 (T) wherein it has been held that aluminium foil pouch for containing tobacco is classifiable under Heading 76.12 as the essential characteristic is of aluminuim content in the shape of aluminuim foil and being backed by plastic does not take it away from the categ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the appeal filed by the Revenue has been dismissed by the Supreme Court after condoning the delay (Civil Appeal No. 5148 of 2000, dated 24-2-2003) [2003 (157) E.L.T. A35 (S.C.)]. 4. The learned Advocate finally contended that the entire demand for the period from November, 1996 to February, 2000 is time-barred as the show cause notice was issued on 29-11-2001 beyond the normal period of one year specified in Section 11A(1) of the Central Excise Act; that larger period of limitation cannot be invoked as they have been classifying the impugned goods under sub-headings 7607.60 and 7220.90 and have been regularly filing RT-12 returns; that along with their classification lists and declarations, the Appellants have also submitted details o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, such as metal foil, paperboard, etc. are covered by Chapter 39 provided that they retain the essential character of articles of plastics; that in the present matters, it is not in dispute that the impugned goods are used for telecommunication purpose to avoid distortion in transmission of telecommunication signals; that the cables (JFTC or Optical fibre cables) are laid underground and during transmission of telecommunication signals, electromagnetic field is generated; that such electromagnetic field is also generated in other cables which are laid side by side; that the plastic being poor conductor of electricity, is applied over JFTC/Optical fibre cables to prevent distortion in the signals; that thus the impugned products are insulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the article which identifies it in his mind. 6. In reply, the learned Advocate mentioned that it was not the case of the Revenue in the show cause notice nor in the impugned Order that the impugned products are insulating materials. He also referred to the use of the impugned goods as described by the customers of the Appellants. According to M/s. Shriniwas Synthetic Packers (P) Ltd., copolymer backed stainless steel tape is used in optical fibre cables to provide armour to make the cable rodent and termite proof; that stringent specifications are laid down for plastic backed steel tape to ensure electrical continuity, corrosion, resistance, radial and compressive strength, etc.; that similarly M/s. Paramount Communication Ltd. have men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt on the classification declaration to the effect that manufacturing process had been studied and correctness of the classification had been satisfied. Accordingly, the extended period of limitation as provided in proviso to Section 11A(1) of the Central Excise Act for demanding the duty is not invocable and the entire demand is hit by time-limit specified in Section 11A(1). 8.1 On merits, the contention of the learned SDR is that the essential character of the impugned goods is imparted by the plastic as the products in question are nothing but insulating materials. On the other hand, the contention of the learned Advocate is that aluminium tape covers JFTC cable core to prevent distortion of electrical signals by surrounding electromag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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