G. Sankaran, Sr. Vice-President

1. This appeal is against Order-in-Appeal No. 67-CE/JPR/88 dated 14-6-1988 passed by Collector of Central Excise (Appeals), New Delhi. By order dated 19-5-1987, the Assistant Collector of Central Excise, Jaipur, classified the following goods, manufactured by the appellants, under the headings/sub-headings of the Schedule to the Central Excise Tariff Act, 1985 (the Schedule is referred to hereinafter as the New Tariff) - (1) paper based unclad industrial laminates (2) paper based copper clad industrial laminates (3) glass fabric based unclad industrial laminates and (4) glass fabric based clad industrial laminates as shown against each:-

xxx

He ordered levy of duty and revision of the classification already ordered accordingly. He also confirmed the demand for duty raised by show cause notice dated 1-9-1986 for Rs. 10,82,699.54 and finalisation of assessments made on provisional basis. The appeal against this order was dismissed by the Collector (Appeals) by order dated 14-6-1988 which is now under challenge in the present appeal.

2. By interim order No. 17/89-C, dated 28-2-1989, the Tribunal directed that, during the pendency of the appeal, assessment should be made as follows :-

xxx

It was further ordered that future clearances should be allowed on execution of bonds without insistence on bank guarantees and that the bank guarantees already executed should not be encashed, till the disposal of the appeal.

3. The hearing of the appeal was spread over several sittings. Shri V. Sridharan, Advocate, represented the appellants and Shri A.S. Sunder Rajan, DR, the respondent.

3A. The appellants' claim on classification of the goods is as follows :-

Heading/sub-heading Copper clad laminates whether glass fabric based or paper 74.06 based Unclad laminates 85.46 In the alternative, paper based unclad laminate 48.18 or 39.22 (upto 10-2-1987) and 39.26 (after 10-2-1987)

4. In support of the claim regarding copper clad laminates, whether glass based or epoxy based, under heading No. 74.06, reliance was placed by the learned Counsel for the appellants on this Tribunal's decision in MANU/CE/0315/1989 : 1989 (43) E.L.T. 660 (Tri.) C.C.E., Ahmedabad and Ors. v. Metro Wood Engineering Works and Ors. Order No. 52-54/89-C, dated 16-2-1989. In that case, the Revenue had contended that industrial laminates with copper cladding would be classifiable under Heading 7413.90 as "other articles of copper" and not 74.06. Relying on Chapter Note l(viii) to Chapter 74 of the New Tariff and the position that the copper sheet or foil gave the laminate its essential character of conduction of electric current, the Tribunal held that the product was classifiable as copper foil under Heading 74.06 and not as an article of copper under Heading 7413.90.

5. Shri Sridharan also drew support from the CBEC's Circular F.No. 93/105/86-CX. 3, dated 31-12-1986 which inter alia opined that copper clad glass fabric reinforced laminates would appropriately be classifiable under Chapter 74 of the New Tariff along with copper plates, sheets, coils, as the case might be. Therefore, copper clad laminates, paper or glass based, would fall under Heading 74.06.

6. In support of the claim regarding unclad laminates, the appellants' contention, relying, inter alia, on certain decisions of the Tribunal [though in relation to the erstwhile First Schedule to the Central Excises & Salt Act, 1944 (hereinafter referred to as the old Tariff) which ceased to be in force on 27-2-1986], was that industrial laminates were electrical insulators. Those decisions held good even for the new Tariff. The correct heading was, therefore, 85.46. In coming to its conclusion, the Tribunal relied, inter alia, on its earlier decision in the case of Bakelite Hylam Ltd. v. Collector of Central Excise [MANU/CE/0174/1985 : 1985 (22) E.L.T. 879]. The Tariff under consideration in that case was the old Tariff but the basic question was whether industrial laminates were raw materials f