OPTEL TELECOMMUNICATIONS LTD. Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) Heard both sides. The applicant filed this application for waiver of pre -deposit of duty approximately Rs. 19 crores and penalty of Rs. 5 crores.

(2.) In this case demand is confirmed by classifying the product manufactured by the applicants under Heading 85.44 whereas appellant claimed the same under Heading 90.01 of Central Excise Tariff.

(3.) The Heading 85.44 of Tariff covers optical fibre and cables made up of individually sheathed fibre whether or not assembled with electric conductors. Whereas the Heading 90.01 of Central Excise Tariff covers optical fibre cables other than those Heading 85.44 of Tariff, the manufacturing process as explained by the appellant is as under : "The manufacturing process in first step consists of obtaining pre -form either by MCVD process or FVD process. The pre -form so obtained is then drawn into fibre. The thickness of the bone fibre is mentioned and a thin coating of UV -cured acrylate simultaneously applied to it. The fibres so drawn are then coloured for identification purpose and in pair of two (one coloured and one with natural colour) are placed in loose tube filed with jelly. These loose tubes (3 Nos. or 6 Nos.) along with filler PE cord are then standard around FRP Centre Tension Member to form the core of the cable. Jelly is applied during the core manufacturing stage and a polyester film is wrapped around the core which is held in place by PE tape. These loose tube cores are then sheathed with black IDPE and to provide extra strength to cable it is provided suitable nylon jacketing."