VIDYUT UDYOG Vs. COLLECTOR OF CENTRAL EXCISE
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
COLLECTOR OF CENTRAL EXCISE
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N.K. Bajpai, Member (T) -
(1.) THIS appeal involves the determination of classification of two products manufactured by the appellants. The first product is semi -conducting carbon tape. While the appellants had claimed its classification under Item 68, the Collector has decided, after chemical test, that Item 22B is more appropriate. The second product is glass fabrics of which appellants had claimed the classification under Item 22F as 'mineral fibres and yarn and manufactures therefrom', but the Collector considers Item 22B which covers 'textile fabrics impregnated, coated or laminated .." to be appropriate.
(2.) BESIDES , an amount of Rs. 37,21,373.20 was demanded as duty on both the products for the period 21 -2 -1978 to 21 -2 -1983 on the ground that the appellants had given false declaration in the Classification List because from the report of the Chemical Examiner, it appeared that both the semi -conducting carbon tape cloth and glass fabrics are correctly classifiable under Tariff Item 22B instead of Tariff Item 68 and 22F respectively. Penalty of Rupees one lakh was also imposed on the appellants under Rule 173Q of the Central Excise Rules, 1944.
(3.) WHEN the matter came upto the Tribunal, by an order No. S -33/90 -D dated 20th February, 1990 the Tribunal had dispensed with the pre -deposit of the penalty unconditionally; by a subsequent order S -66/91 -D dated 8th April, 1991, the pre -deposit of the duty amount of Rs. 37,21,373.20 was also dispensed with and it was decided to hear the appeal on merits.
While narrating the sequence of events, it has been stated in the appeal that semi -conducting carbon tape is manufactured from grey (unprocessed) nylon fabrics classifiable under Item 22 by coating it with carbon powder, by mixing it with solution of alkyd resin dissolved in a solvent. The tape is coated with carbon powder and the resin simply acts as a binder because the carbon powder cannot adhere on unprocessed nylon tapes without any adhesive material. The percentage of uncoated nylon fabrics is about 65% by weight of the finished products, and carbon accounts for about 34% while the resin is only 1% of the total weight of the finished products. After the nylon tapes are coated with carbon, they are cleared in the form of rolls or reels. So far as the glass fibres are concerned, unprocessed fabrics falling under Item 22F are coated with a solution of synthetic resin. The percentage of glass fabrics in the finished product is about 60%.;
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