BHARAT HEAVY ELECTRICALS LTD Vs. COLLECTOR OF CUSTOMS

JUDGEMENT

(1.) THIS is a revision application (hereinafter called "appeal") filed before the Central Government which under Section 131B of the Customs Act, 1962 stands transferred to this Tribunal to be disposed of as if it were an appeal presented before the Tribunal.

(2.) THERE are two issues involved in this appeal, relating to two different items of goods imported under the same bill of entry. The first is a substance known as "Termex B" SP 1694. This is further described as "a flexible slot insulation combining polyester film with polyester fibre mat". Countervailing duty with reference to Item 18 of the Central Excise Tariff, covering "rayon and synthetic fibres and yarn" was levied on this item. In their appeal the .appellants contended that this was not correct, and that the goods were more specifically covered by the description "electrical insulating tapes", and should have been charged to countervailing duty with reference to Item 59 (which has since been deleted from the Central Excise Tariff). At the time of personal hearing, Shri Gupta made a further submission that their goods were not covered even by Item 59 and were, therefore, not liable to countervailing duty at all, since the importation took place in 1973, when Item 68 of the Central Excise Tariff was not in existence.

(3.) SHRI Gupta also argued that there was no question of assessing the goods to countervailing duty with reference to Item 15A, covering artificial or synthetic resins and plastic materials. According to him, the goods would be excluded by the terms of Explanation II under Item 15A. He further argued that the material could be only used as electrical insulating material, as it had very high electrical insulating properties. He also relied on the Tribunal's Order No. D187/83, reported in 1983 ELT 1160, wherein electrical insulating tape was held as classifiable under Item 68 after the deletion of Item 59.