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Classification of plywood as commercial plywood or structural plywood for excise duty purposes. Analysis: The petitioner, a firm manufacturing commercial plywood, was paying excise duty at 20% under Central Excise Tariff 16B. However, the Revenue contended that the plywood manufactured was structural plywood attracting a higher duty of 30%. The main issue was whether the goods manufactured were commercial plywood or structural plywood, determining the applicable duty rate. The court noted that the classification required investigation and appraisal of material and application of relevant law. The test for classification of goods under specific entries is based on how they are known in the market and understood by consumers and the commercial community. The court emphasized the need for tangible material to determine under which category the plywood falls, which could be provided through affidavits, expert opinions, or examination of trade persons. The court found that a detailed examination and investigation were necessary for a fair adjudication of the issues. It directed the Revenue to conduct an inquiry to decide the appropriate customs tariff entry for the plywood manufactured by the petitioner. The petitioner was given the opportunity to present evidence and objections within six weeks. No recovery of any amount was allowed until a proper investigation and final orders were passed. An interim order was extended to allow the petitioner to take advantage of Rule 9(b) for subsequent assessments. The disputed duty stayed pending the proceedings was not collectible until final orders were issued. In conclusion, the court disposed of the Original Petition without costs, directing the Revenue to conduct an inquiry to determine the correct classification of plywood for excise duty purposes. The petitioner was granted the opportunity to present evidence and objections, ensuring a fair adjudication of the matter. The court emphasized the importance of tangible material and expert opinions in determining the classification of goods under specific tariff entries.
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