70.14 Glass fibres (including glass wool and glass filaments) and articles thereof (for example, yarn woven fabrics), whether or not impregnated, coated, covered or laminated with plastics or varnish

2. In the grounds of appeal, the following has been urged:

1. The goods in question are composite goods made out of fibre glass and plastic. Heading No. 70.14 of Central Excise Tariff is more specific than the heading under Chapter 39, as Chapter 70.14 covers all articles of fibre glass whether or not impregnated, coated, covered or laminated with plastics or varnish. It is not correct to say that those articles of fibre glass in which fibre glass content is predominent alone is covered under Chapter 70.14 as it would render the further description 'whether or not etc', as meaningless. As the goods in question are composite goods made out of fibre glass, the same are correctly classifiable under Chapter 70.14 only.

2. In terms of Rule 3 (a) of interpretation rules, the heading which provides for more specific description shall be preferred to a heading providing general description. In the instant case the impugned goods are more specifically covered under Chapter 70.14 than under Chapter 39.

3. If the intention of the Government is to classify only those articles of fibre glass in which the fibre glass is predominant under Chapter heading 70.14, there is no need for the additional phrase 'whether or not,.....' in Chapter heading 70.14.

3. The learned JDR for the department, Shri Murugandi, reiterates the grounds of appeal.

4. For an item to be assessed under 70.14, it must be covered by the description under heading 70.14. So far as the articles are concerned, the examples given in regard to the articles which would be covered under this heading are those of yarn and woven fabrics. The articles in question before us are made of composite material i.e. fibre glass and plastics. The percentage of plastics is 71.93% and the glass fibre is 28.07%.

5. In order to appreciate the scope of the tariff heading, we have referred to the HSN. Under the HSN, the articles which are covered under Heading 70.14, the corresponding entry to 70.14 is 70.19. Under this the following goods are stated to be excluded from the purview of item 70.14 i.e. semi-finished products and articles obtained by compressing glass fibres or super imposed layers of glass fibres, with plastics, if having a hard rigid character and hence lost the character of articles of glass fibres. There is no averment from the revenue that the goods which are the subject matter of the appeal before us do not answer to this category of goods which are excluded. The articles being in the nature of protective covers have to be rigid and there is nothing to say that these have retained the character of glass fibres. In fact, the plastics predominates by weight, being over 70% as against the glass fibre of the order of about 29%. The Hon'ble Supreme Court in the case of Wood Craft reported in 1995 (7) RLT 661 (S.C.) =1995 (77) ELT 23, para 18, has clearly held that in the case of any controversy regarding the scope of the Tariff Heading in the Central Excise Tariff, resort can be had to the HSN Notes as the Central Excise Tariff is based on the HSN. In that view of the matter, we are of the view that the department's plea for assessment under 17.14 is not sustainable.

6. The learned Chartered Accountant for the respondents has also referred us to a decision of the Tribunal in the case of CCE, Madras Vs. Coromandel Prodorite Pvt. Ltd