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TMI Blog1997 (12) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... 2, 1994, does not mean that prior to the issuance of the Notification No. 144/94 dated December 22, 1994 products known commercially as decorative laminates fell within the ambit of the Notification No. 135/89 dated May, 12 1989 and No. 20/94 dated March 1, 1994 for the purpose of concessional rate of duty. The insertion of products known commercially as decorative laminates by Notification No. 144/94 dated December 22,1994 only means that these products have been expressly excluded for the purpose of applicability of the concessional rate of duty. Appeal dismissed. - CIVIL APPEALS NOS. 1852-53/1991.2516-21/1991 AND 11899/1996 - - - Dated:- 17-12-1997 - S.C. AGRAWAL AND D.P. WADHWA, JJ. Joseph Vellapally, F.S.Nariman, Sr. Advs., Y.P.Mahajan, K.C.Kaushik, S.Dwivedi, V.K.Verma, Mrs.Rekha Pandey, Ms.Meenakshi Arora, (Mrs.Alka Agarwal, V.K.Bhatt, Mrs.V.D.Khanna,) Advs. for M/S.I.M.Navavati, Associates, Mrs. Janaki Ramachandran, K.K.Anand, Rajesh Kumar, M.L.Lahoty, Paban Kr.Sharma, Himanshu Shekhar, R.N. Karanjawala, Mrs.Nandini Gore, Arvind Kumar, Mrs.M.K.Karanjawala, Advs. with them for the appearing parties. JUDGEMENT S.C.AGRAWAL,J. These appeals by the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l No. 11899 of 1995 have been filled against the said judgment of the Tribunal. On behalf of the Revenue it has been submitted that the matter now stand covered by the recent judgment of this Court in CCE Hyderabad v. Bakelite Hylam Ltd., (1997) 91 ELT 13(SC). In that case the Court has considered the questions regarding the classification for the purpose of excise duty of the following items: (i) Decorative laminated sheets; (ii) Industrial laminated sheets which are paper based, and (iii) Glass Epoxy laminated sheets. In the judgment under appeal in that case the Tribunal had held that all these varieties of laminated sheets were not covered by Entry 15- A(2) and were classifiable under residuary Item 48 of the Old Tariff which was in operation prior to coming into force of the Act and that the said products were classifiable under Heading 4818.90 till February 28, 1988 and under Heading 4823.90 on or after March 1,1988 and that they did not fall under Heading 3920.21 till February 28,1988 and under Heading 3920.37 on or after March 1,1988 of the New Tariff in the Schedule to the Act. Reversing the said view of the Tribunal, this Court has held that the Tribunal had righ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4818.90 other Some changes were made in the tariff entries in the Schedule to the Act effect from March 1,1988 and Heading No. 3820.31 was re-numbered and as a result plates, etc. of other plastics that were Rigid laminated were placed in Heading 3920.37. Similarly, Heading 48.18 was re-numbered as 48.23 and sub-heading 4818.90 was numbered as 4823.90 with effect from March 1,1988. The New Tariff introduced by the Act prescribes the Rules of Interpretation of the entries and in respect of goods which are prima facie classifiable under two or more headings the following provision in contained in Rule 3: 3 When by application of sub-rule (b) of Rule 2 or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description...... (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets, which cannot be classified by reference to (a), sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rule (a) shall be classified as if they consisted of the material or components which gives them their essential character insofar as this criterion is applicable. As a result of impregnation with the chemical solutions the character of paper is changed into decorative laminates and it is the chemical solutions which give them their essential character. In this regard, this Court in Bakelite Hylam Ltd., (supra) has said : In the present case, the essential character of a decorative laminated sheet is its rigidity or strength and its resistence to heat and moisture. This are essentially characteristics which are imparted by resins. Paper does not possess any of these characteristics. Therefore, applying Rule 3 (b) and going by the essential characteristics of such laminated sheets, these goods are more appropriately classifiable under Chapter 39. Reliance had been placed by the Court on the following Explanatory Note to Chapter 39 in the Harmonised System of Nomenclature : Combinations of plastics and materials other than textiles : This Chapter also covers the following products, whether they have been obtained by a single operation or by a nu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48.14 do not fall that Chapter but fall in Chapter 39. In view of the said provision in Chapter 48 it has been held that Rule 1 cannot be invoked and the matter of classification has to be determined in accordance with Rule 3(b) of the Rules of Interpretation. In Moti Laminates Private Ltd. (supra) this Court was considering the question whether resin or resol which are produced in the process of manufacturing laminated sheets are liable to payment of excise duty for the reason that artificial or synthetic resins and plastic materials are leviable goods under Item 15A of the old tariff. It was held that resol or resin is not marketable or capable or being marketed and, therefore the same was not subject to duty. The said decision in Moti Laminates Private Ltd. (supra) does not have any bearing on the question of classification of paper based decorative laminated sheets produced by the respondents. It has been pointed out that by Finance Act, 1997 the Central Excise Tariff Act, 1985 has been amended and the following new the sub-Heading 4823.40 has been Inserted : 4823.40. Products consisting of sheets of paper or paper board, impregnated, coated or covered with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irected that the paper based decorative laminated sheets and cotton fabric based laminated decorative boards are classifiable under sub-heading 3920.21 till February 28, 1988 and under sub-heading 3920.37 on and after March 1,1988. Civil Appeals Nos. 2516-21 of 1992 and 11899 of 1996 are also allowed and the judgment of the Tribunal holding that paper based decorative laminated sheet are classifiable under sub-heading 4818.90 is set aside and it is held that the said product is classifiable under sub-heading 3920.31 till February 28,1988 and under sub-heading 3920.37 on and after March 1,1988. No order as to costs. CIVIL APPEALS NOS. 7027/1995, 7029/1995, 9483/1996, 221/1997, 10466/1995, 10489/1995 These appeals are filed against the judgment of the Tribunal dated July 18,1995 whereby the claim of the appellants for payment of excise duty at the concessional rate on the notification No. 135/89-CE dated May 12, 1989 has been negatived. The appellants manufacture paper based decorative laminated sheets. The said products are made by coating and impregnating paper in chemical solution, namely, Phenol Formaldehyde Solution and Melamine Formaldehyde solution. Notificati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 48 Cellulose insole board of sheets ad Valorem 100% 6. 4811.30 and 4823.90 All goods, other than products consisting of sheets of paper or paper board imprognated, coated or covered with plastics, compressed together in on or more operations. 20% ad Valorem By Notification No. 144/94-C.E. dated December 22, 1994 Notification No. 20/94 dated March 1, 1944 was amended and entry at serial No . 6 in the table annexed with the said notification was substituted by the following entry : All goods, other than the following, namely ;- (a) Products consisting of sheets or paper or paper board impregnated, coated or covered with plastics (including thermoset resins or mixtures thereof or chemical formulations containing melamine, phenol, urea or formaldehyde with or without curing agents or catalysts), compressed together in or more operations, or] (b) Products known commercially as decorative laminates. The case of the appellants is that till the issuance of Notification No. 144/94 dated December 22, 1994 they were liable to pay conce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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