TMI Blog1997 (3) TMI 598X X X X Extracts X X X X X X X X Extracts X X X X ..... Tariff. - C.A. 275 OF 1991 with C.A.Nos. 1228/91, 1229/91, 7086/95, 6593-6594/94, 4702/90, 2554-55/89, 3182-3202/90, 4886/90, 2898/91, 3050/32, 3251/95, 438/91, 2491/92 and 9001/96 - - - Dated:- 10-3-1997 - A.M. AHMADI, SUJATA V. MANOHAR, JJ. JUDGMENT Hon'ble the Chief Justice M.S. Usgaonkar, Additional Solicitor General, D.A. Dave, Harish N. Salve, Sr.Advs. Dhruv Mehta, Dalip Tandon, V.K.Verma, A.Subba Rao, P. Parmeswaran, Ms. Janki Ramachandran, Ms. Meenakshi Arora, (Devan Parikh, Ms. Ruby Ahuja,) Advs. for Ms. M. Karajawala, V. Lakshmi Kumaran, V. Sridharan, V. Balachandra, Ravinder Narain, Ms. Amrita Mitra, M.L. Lahoty, Amit Bansal, Pawan Sharma, Himanshu Shekhar, Rajiv Tyagi, U.A. Rana, S. Tripathi, C.N. Sree Kumar, Ms. Indu Malhotra, V.L. Francis, and P.I. Jose, Advs. with hem for the appearing parties. JUDGEMENT Mrs. Sujata V. Manohar, J. These appeals, which are at the instance of the Collector of Central Excise, raise common questions regarding the classification of laminated sheets. There varieties of laminated sheets are involved in these appeals: (1) Decorative laminated sheets; (2) Industrial laminated sheets which are paper b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1985 from 1.3.1988. The description of the material tariff entires for our purposes, however, has not been affected by the changes made in the Central Excise Tariff Act of 1985 with effect from 1.3.1988, except for a change in the number of the entry. OLD TARIFF: Under the Old Tariff, the two competing entries in the First Schedule are Entry 15A(2) and Entry 68. Entry 15A(2) at the material time was as follows : 15A: Artificial or Synthetic resins and plastic materials, and other materials and articles specified below: (1) Condensation, Polycondensation and polydaddition products.... (2) Articles of materials described in sub-item (1), the following namely :- Boards, sheeting, sheets and films, whether lacquered metallised or laminated or not; lay flat tubings not containing any textile materials. Entry 68 which is a residuary entry, is as follows: Item No. Description of goods Rate of Duty 6. All other goods, not elsewhere specified, Twelve per but excluding- cent ad valorem (a) Alcohol, all sorts, including alcoholic liquors for human consumption; (b) Opium, Indian hemp and other narcotic drugs and narcotics; and (c) dutiable goods as defined in sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here are plastic material in different shapes and forms and not articles made from such plastic material. There is a noticeable difference between plastic material in different shapes and form such as tubes, rods, sheets etc. and articles made from such plastic materials such as a plastic torch. This Court further held that articles made of plastic refer to articles made wholly of commodity commercially knows as plastics and not articles made from plastics along with other material. The interpretation, which this Court put on Entry 15A(2) in the above case will apply equally to Entry 15A(2) set out earlier which was thus modified subsequently and with which we are concerned. The basic wording of Entry 15A(2), namely, articles of material described in sub-item(1), the following is similar to the original wording Articles made of plastic all sorts . The description which follows: boards, sheeting, sheets, films etc. in Entry 15A(2) as applicable here, also refers to plastic material in different shapes and forms. This entry does not deal with a composite commodity which may consist of plastics or materials described in sub-item (1) of Entry 15A, combined with other material. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be provided for by a separate Act to be called the Central Excise Tariff Act.' Hence for the interpretation of the New Tariff harmonised system of nomenclature and its explanatory notes are relevant. In the case of Collector of Central Excise, Shillong v. Wood Crafts Products Ltd. 91995 [3] SCC 452), this Court, while considering the Central Excise Tariff Act of 1985, has held that looking to the Statement of Objects and Reasons the Central Excise Tariff under the 1985 Act is based on the Harmonised System of Nomenclature (HSN) and the internationally accepted nomenclature has been adopted to reduce disputes on account of tariff classification. Accordingly, for resolving any dispute relating to tariff classification, the internationally accepted nomenclature emerging from the HSN is a safe guide, this being the expressly acknowledged basis of the structure of the Central Excise Tariff in the 1985 Act and the tariff classification made therein. In case of any doubt, the HSN is a safe guide for ascertaining the true meaning of any expression used in the Act. In addition the New Tariff Act has specifically laid down Rules of Interpretation which govern the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied under entry 3920.11 to 3920.19. Regenerated Cellulose falls under entry 3920.31 to 3920.39. Sheets of other Central Excise Authorities, decorative laminated sheets which consist of a combination of paper and synthetic resins should be classified under entry 3920.31 since the final product which is in the form of laminated sheets, has all the essential characteristics of a plastic rather than of paper. The manufacturers, however, contend that paper which is a component of a decorative laminated sheet constitutes 60% to 70% of the product while resins constitute only 30% to 40% of the product. Hence looking to the predominance of paper as also the decorative quantity given by it to the sheets, decorative laminated sheets should be classified under Chapter 48 of the New Tariff which deal with Paper and Paperboard, Articles of Paper Pulp, of Paper or of Paperboard . The relevant entries, according to the manufacturers, are 4818.90/4823.90. Note 1(f) to Chapter 48 is as follows: Note (1): This chapter does not cover: (a)..... ........ (f); Paper reinforced stratified plastic sheeting, or one layer of paper or paperboard coated or covered with a layer of plastics, the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Notes do not otherwise require, according to the provisions hereinafter contained. 2(a) (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles contained in rule 3. 3. When by application of sub- rule(b) of rule 2 or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows; (a) The heading which provides the most specific description shall be preferred to headings providing a more general description... (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component of the material or component which gives them t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per or of articles of glass fibres, they would be classified under Chapter 48 or Chapter 70, as the case may be. The decorative laminated sheets which have a hard and rigid character are, therefore, classifiable under Chapter 39 and not under Chapter 48. The appropriate entry is 3920.31/3920.37 which deals, inter alia, with sheets of other plastics, rigid, laminated. Decorative laminated sheets, therefore, cannot be classified under Tariff Entry 4818.90/4823.90. CEGAT is not right in classifying these under Entry 4818.90/4823.90 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 earlier, p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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