1996 (8) TMI 334 - AT - Central Excise

Summary

Issues: Classification of "Peeling Rollers" under Tariff Heading 44.03 or 44.05

In the present appeal, the main issue is the classification of "Peeling Rollers" obtained after peeling wood of thickness exceeding 6 mm. The question is whether these rollers should be classified under Tariff Heading 44.03, as claimed by the respondents, or under Tariff Heading 44.05, as claimed by the Revenue in the appeal memorandum.

Analysis:

The Tribunal referred to a previous case where a similar issue was addressed. In the case of Collector of Central Excise, Shillong v. M/s. Nagaland Wood Products (P) Ltd., the Tribunal held that "Peeling Rollers" fall under Heading 44.03, specifically covering "Peeled Wood" of thickness exceeding 6 mm. The Tribunal rejected the Revenue's argument that the rollers should be classified under Heading 44.05, which covers wood "continuously shaped" along its edges or faces. The Tribunal emphasized that the more specific description in Heading 44.03 applies to the Peeling Rollers, making them eligible for duty exemption under Notification No. 227/86-C.E.

In the current case, the Collector argued that Heading 44.03 does not cover Peeling Rollers, asserting that Wood Peeled and Peeling Roller are distinct items. The Collector contended that Wood Peeled refers to sheets of slice peeled from a log, while Peeling Roller is the core of a log left after peeling. The Collector maintained that the criterion of "thickness" for products under Heading 44.03 does not apply to Peeling Rollers. Additionally, the Collector argued that the Explanatory Note under Heading 44.05 categorically places Peeling Rollers under that classification.

Ultimately, the Tribunal dismissed the Revenue's appeal and upheld the lower appellate authority's decision. The Tribunal confirmed that the Peeling Rollers, with a thickness exceeding 6 mm, obtained during the veneer manufacturing process by peeling log wood, should be classified under Tariff Heading 44.03. This classification entitles the Peeling Rollers to duty exemption under the relevant notification, in line with the specific description provided in Heading 44.03 for "peeled" wood of a certain thickness.