JUDGMENT

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. Three varieties of laminated sheets are involved in these appeal:

(1) Decorative laminated sheets;

(2) Industrial laminated sheets which are paper based and;

(3) Glass Epoxy laminated sheets.

2. The manufacturing process of decorative laminated sheets has been described by the manufacturers. Paper is passed through or immersed in a resin bath (phenol formaldehyde resin) so that the paper is impregnated with resin. This paper is then dried. At this stage the paper which is impregnated with resin is known as Prepreg -P ( P stands for paper). Layers of Prepreg paper are then stacked. The top layer consists of paper which has a decorative design on it and which is impregnated with resin. The sheets of papers so stacked are then pressed together in a hydraulic press applying pressure and heat to make a laminated sheet. In the process, the resin passes through the pores of paper and acts as a binder. The end product is a hard rigid sheet which is impact resistent and is unaffected by heat or moisture. These decorative laminated sheets are sold in the market and they are commonly used for surfacing of furniture.

3. In the case of industrial laminates which are paper based, the process of manufacture is similar except that the paper which is used is electrical grade kraft paper. These industrial laminates are used as electrical insulators.

4. In the case of glass epoxy laminates instead of paper, glass fabric is impregnated with resin and dried (Prepeg-G). Several layers of resin impregnated glass fabric-Prepeg-G are pressed together in a hydraulic press applying heat and pressure in order to produce glass epoxy laminated sheets. These are also used as electrical insulators.

5. The dispute in these appeals relates to the correct classification of these products under the Central Excise Tariff as applicable at the material time. The classification lists which are the subject matter of these appeals relate to the period 1983 to 1989 (approx.).

6. The classification lists prior to 28.2.1986 are governed by the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the Old Tariff ).

7. With effect from 28.2.1986 the Central Excise Tariff Act, 1985 came into force. Hence the classification lists after 28.2.1986 are governed by the Central Excise Tariff Act, 1985 (hereinafter referred to as the New Tariff ). There have been some changes in the relevant Tariff Entries under the Central Excise Tariff Act of 1985 from 1.3.1988. The description of the material tariff entries 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 :

8. 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 Polyaddition products......

(2) Articles of materials described in sub-item (1), the following, namely:-

Boards, sheeting, sheets and films, whether lacquered or matallised or laminated or not; lay flat tubings not containing any textile materials."

Entry 68 which is a residuary entry, is as follows :

Item Description of goods Rate of Duty No.

68. All other goods, not Twelve per elsewhere specified, cent ad but excluding valorem

(a) alcohol, all sorts, in-cluding alcoholic liq- uors for human con-sumption;

(b) opium, Indian hemp and other narcotic drugs and narcotics; and