ORDER
C.N.B. Nair, Member (T)
1. The issue raised in these appeals of the Revenue is the correct classification of “contact tapes”. In the impugned order the Commissioner of Central Excise (Appeals) held that contact tapes would be more appropriately classifiable under Heading 7101.60 for the purpose of CVD (additional duty of Customs), after setting aside the order of the Assistant Commissioner of Customs that the correct classification was 7101.90. The present appeals of the Revenue seek the restoration of the classification ordered in the order-in-original.
2. The facts of the case are that the contact tapes in question are for manufacture of relays. The contact tapes are in tape form. They are silver alloy with gold plating. The finding of the Commissioner is that according to Note 5 to Chapter 71, alloy has to be treated as precious metal itself. Therefore, the silver alloy merits classification as silver itself. Despite plating of gold, the item will continue to be silver, since the predominant metal is silver. As against these observations of the Commissioner, the present appeal submits that since silver alloy and silver alloy coated with gold are distinct and different items, classification cannot be carried out on the basis of Chapter Note 5.
3. We have perused the records and have heard both sides. Note 5 to Chapter 71 reads as under :-
“5. Except where the context otherwise requires, any reference in the Schedule to precious metals or to any particular precious metal includes a reference to alloys treated as alloys of precious metal, but not to metal clad with precious metal or to base metal or non-metals plated with precious metal.”
4. It is clear from the above Note that alloys of precious metals, will be treated as precious metals themselves under the Tariff. Therefore, the Commissioner’s order that the alloy in question should be treated as silver is in conformity with the scheme of the Tariff. Further there could be no arguing that by coating one metal on another, the coated metal gets upgraded. Therefore, there could be no case that the coating of gold on the silver alloy affected the classification of the alloy. Under these circumstances, we find no merit in the appeal of the Revenue. They fail and are rejected.