1989 (10) TMI 198 - AT - Central Excise

Summary

Issues:
Classification of Block Board under Heading No. 4410.90 or 4408.90 of the Central Excise Tariff Act, 1985.

Analysis:
The case involved the classification of Block Board manufactured by the appellants under Heading No. 4410.90 or 4408.90 of the Central Excise Tariff Act, 1985. The Collector (Appeals) had classified it under Heading No. 4408.90 based on the explanatory notes under Heading No. 44.12 of the H.S.N. The appellants contended that Block Board should be classified under the residual Heading "Other" 4410.90 as it is not similar to laminated wood. The absence of a specific definition of Block Board or Laminated Wood in the tariff led to the need to interpret the terms in their popular sense as understood in the industry, as established in various Supreme Court judgments.

The appellants submitted certificates from dealers in plywood to demonstrate the commercial understanding of Block Board. However, these documents were not presented before the Collector (Appeals), and no steps were taken to seek permission to admit them as additional evidence. The Tribunal then referred to the Indian Standards Institute publications for guidance. The Glossary of Terms published by the ISI provided definitions of Laminated Wood and Block Board, highlighting the differences between the two products.

The definitions revealed that Laminated Wood consists of layers of wood and adhesive with parallel grains, while Block Board has a core made of strips of wood laid separately and joined to form a slab. The core blocks' grain direction differs from that of the outer veneers, distinguishing Block Board from Plywood. The appellants argued that Block Board is not similar to plywood or laminated wood, emphasizing the term "similar" in Heading No. 44.08.

The Department contended that Block Board falls under the phrase "similar laminated wood" in Heading No. 44.08, supported by the explanatory notes to the H.S.N. The Tribunal noted the similarity between Heading 44.08 of the Indian Tariff Schedule and Heading 44.12 of the H.S.N., which included Block Board under "similar laminated wood." However, the Tribunal emphasized interpreting the tariff entries based on the words used, statutory notes, and relevant rules of interpretation.

Considering the definitions, industry standards, and the absence of evidence showing Block Board as known in trade as laminated wood, the Tribunal held that Block Board should be classified under Heading 44.10, sub-heading 4410.90. The Department failed to prove Block Board's classification under Heading No. 44.08, sub-heading 4408.90, leading to the success of the appeals and their allowance.