Circular No. 189/23/96-CX dated 26/3/96
Subject: Central Excise. - Classification of track insulating liners used
by the Railways
I am directed to say that doubts have arisen about the classification of track
insulating materials of plastics such as insulating liners, insulating end post,
insulating plates, glass filled nylon liners, washers etc. manufactured for use by
Railways. These products are reportedly used by the Railways for electrical insulation
in track circulated section of railway to prevent flow of electric current from one
railway track section to another railway track section. The issue is whether these
goods merit classification under sub-heading 3926.90 as articles of plastics or as
electrical insulators falling under Chapter Subheading 8546.00 of CETA, 1985.
2. It has been represented that insulating liners are made of plastic and is one of
the unassembled track fitting item of the rail fastening assembly and to be classified
according to the consistent material used in the manufacture and, therefore, are
classifiable under sub-heading 3926.90 of CETA, 1985 as "other articles of plastics".
3. The matter as been examined in depth by the Board. HSN note at page 1406 explains
that insulators are made of any insulating material including plastic and are used on
outdoor cables for example, electrical traction systems (railway, tram-way, trolley
buses etc.). As per the information provided by Indian Railways and Rail India
Technical & Economic Services (RITES), the goods in question are used in the
fabrication of "Insulated rail joints" to prevent flow of electric current from one
railway track section to adjacent section. The Board as observed that since the
products are used for insulation purposes, these are automatically excluded from the
purview of Chapter 39 of the Tariff in view of the Chapter Note 2(n) to Chapter 39 as
the "Electrical insulators" of any material are classifiable under heading 85.46 and
falls within Section XVI of the Tariff. The Board is, therefore, of the view that the
goods in question viz. track insulating materials of plastic .such as insulating
liners, insulating end post, insulating plates, glass filled nylon liners, washers
etc. are correctly classifiable under sub-heading 8546.00 of Central Excise Tariff
Act, 1985 as "electrical insulators of any materials".
Sd/-
(Sanghamitra Panda)
Deputy Secretary to the Government of India
F.No.l51/6/95-CX.4
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