G. Sankaran, Sr. Vice-President

1. This appeal is directed against order-in-appeal No. 280/CE/JPR/87 dated 30.10.1987 passed by the Collector of Central Excise (Appeals), New Delhi.

2. The issue arising for determination is whether the electrical insulation tapes manufactured by the appellants are classifiable under Heading No. 85.46. sub-heading 8546.00, of the schedule to the Central Excise Tariff Act, 1985 (CET, 1985, for short) as claimed by the appellants or under Heading No. 39.19, sub-heading 3919.00, of the schedule as held by the lower authorities.

3. The two headings are reproduced below :-

Heading 39.19, sub-heading 3919.00

"Self-adhesive plates, sheets, film, foil, tape, strip and other flat shapes, of plastics, whether or not in rolls."

Heading 85.46, sub-heading 8546.00

"Electrical Insulators of any material."

4. We have heard Shri V. Sridharan, Advocate, for the appellants and Shri C.V. Durghayya, Departmental representative, for the respondent.

5. The dispute arose in relation to classification list No. 774/86, effective from 24.4.1986, filed by the appellants. The goods were described herein as "Electrical Insulator made of plastic PVC insulation (commonly known as insulation tape)". In classifying the goods under Heading 39.19, sub-heading 3919.00, the Assistant Collector, in his order dated 8.1.1987, has placed reliance on the explanatory notes to the "Harmonised Commodity Description and Coding System" (hereinafter referred to as the "Harmonised System") which forms the basis of the schedule to the Central Excise Tariff Act, 1985. He has relied on the notes under Heading 85.46 which state that the insulators of this heading are used for fixing, supporting or guiding of electric current conductors while at the same time insulating them electrically from each other, from earth, etc. The notes further state that the heading excludes insulating fittings (other than insulators) for electrical machinery, appliances or equipments, that usually there is a relation between the size of insulator arid voltage and further that the shape of the various types of insulators is influenced by electric, thermic and mechanical considerations. Insulators are often given bell, accordion, petticoat, grooved, cylinder or other shapes. as example of insulators covered by the heading are shown Suspension Insulators, Rigid Insulators, and Leading-in Insulators. The Assistant Collector has observed that the goods in dispute do not conform to the characteristics set out in the explanatory notes and hence the heading would not apply. on the other hand, sub-heading 3919.00, squarely covers the goods. The fact that the product has, apart from self-adhesive properties, also electrical insulation properties does not alter the classification under Chapter 39 of the Schedule. Several authorities cited by the appellants in support of their claim were, according to the Assistant Collector, not applicable since they were in the context of the Central Excise Tariff Schedule obtaining prior to the introduction of the C.E.T. 1985. The previous schedule was not based on the Harmonised system. In appeal, this order was upheld by the Collector of Central Excise (Appeals) by his impugned order dated 30.10.1987.

6. It is no doubt true that the schedule to Central Excise Tariff Act, 1985, is a far more detailed and sophisticated tariff nomenclature than its predecessor schedule. It is also based on the "Harmonised Commodity description and coding system" evolved by the Customs Cooperation Council, Brussels. The new schedule has many in-built aids to the interpretation of its headings and sub-headings. These are the section notes and chapter notes which have got statutory force and rules for the interpretation of the schedule, which also have statutory force. The explanatory notes which are not part of the schedule have no statutory force and are only of persuasive value. These notes, drawn up by experts in the field, are a valuable aid to the understanding