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TMI Blog1995 (3) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... of the expression "similar laminated wood" in the same context of classification of block board. Since the Central Excise Tariff Act, 1985 is enacted on the basis and pattern of the HSN, the same expression used in the Act must, as far as practicable, be construed to have the meaning which is expressly given to it in the HSN when there is no indication in the Indian Tariff of a different intention. Thus the expression "similar laminated wood" in Heading No. 44.08 as it stood from the beginning must be construed to include within it block boards of all kinds so that the amendment in Chapter Note 5 w.e.f. 19-3-1990 and thereafter w.e.f. 1-3-1992 merely clarified and made explicit that which was implicit in the heading throughout. These amendments were obviously made to end the dispute raised by the manufacturers by an express statement. Any further discussion with reference to the definitions in the ISI Glossary is unnecessary for the reason already indicated. All the appeals of the revenue are allowed while the appeals and SLPs of the manufacturers are dismissed - 1315-18 of 1990 - - - Dated:- 20-3-1995 - J.S. Verma, S.P. Bharucha and K.S. Paripoornan, JJ. [Judgment pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4408.90 Other 30% 44.10 Articles of wood not elsewhere specified 20% 4410.10 Flush door 30% 4410.90 Other 12% With effect from 19-3-1990, amended Chapter Note 5 in Chapter 44 was introduced which reads as follows :- For the purposes of heading No. 44.08 the expression"5. `similar laminated wood' includes block board, laminated board and batten board, in which the core is thick and composed of blocks, laths or battens of wood glued together and surfaced with the outer plies and also panels in which the wooden core is replaced by other materials such as a layer or layers of particle board, fibre board, wood waste glued together, asbestos or cork." Thereafter with effect from 1-3-1992 a second amendment was made in Chapter Note 5 after which it read as follows : For the purposes of Heading No. 44.08 the expression"5. `similar laminated wood' includes block board, laminated board and batten board, in which the core is thick and composed of blocks, laths or battens of wood glued or otherwise joined together and surfaced with the outer plies and also panels in which the wooden core is repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elating to the first period from 28-2-1986 to 19-3-1990 reported in 1992 (60) E.L.T. 668 and of the High Court for the second period from 20-3-1990 to 28-2-1992 reported in 1993 (66) E.L.T. 345 deserve to be reversed maintaining the decision of the High Court for the third period from 1-3-1992 onwards which is against the manufacturers. It is obvious that in the event of the revenue succeeding in respect of the first period, it must follow that the revenue must succeed for the other two periods also. It is equally obvious that for the third period from 1-3-1992 onwards, in view of the clear wording of the amended Chapter Note 5 w.e.f. 1-3-1992, the question is beyond controversy since the expression "glued or otherwise joined together" has been added in Chapter Note 5 to make it beyond controversy that block boards of all kinds fall within the expression "similar laminated wood". 5.It is significant that Heading No. 44.12 of the HSN is the same as Heading No. 44.08 of the Indian Tariff and reads "Plywood, veneered panels and similar laminated wood". The explanatory notes on the HSN indicate the meaning of the expression "similar laminated wood" as under :- "Similar laminated wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-heading No. 4408.90 in the light of Chapter Note 5 as amended from 1-3-1992 but in the absence of the words "or otherwise joined" from Chapter Note 5 as introduced w.e.f. 19-3-1990, only block boards in which the core is composed of blocks of woods "glued together" would fall under Heading No. 44.08, sub-heading No. 4408.90 during the second period between 20-3-1990 to 28-2-1992. In other words, for the second period the High Court took the view that the only block boards in which blocks of wood are put together by applying adhesive or glue in between, could fall under Heading No. 44.08, sub-heading No. 4408.90 in view of Chapter Note 5 as introduced w.e.f. 19-3-1990 prior to its further amendment w.e.f. 1-3-1992. After the further amendment made in Chapter Note 5 w.e.f. 1-3-1992 by enlargement of the expression "glued together" to "glued or otherwise joined together", the High Court for the third period commencing from 1-3-1992 held that all kinds of block boards whether glued together or joined and kept in place by any other mode fall under the Heading No. 44.08, sub-heading No. 4408.90. 10.Having heard learned counsel for the parties, we are satisfied that the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Excise Tariff suggested by the Study Group by a separate Tariff Act instead of the present system of the tariff being governed by the First Schedule to the Central Excises and Salt Act, 1944. The main features of the Bill are as follows :-4. The tariff included in the Schedule to the Bill has been(i) made more detailed and comprehensive, thus obviating the need for having a residuary tariff Item. Goods of the same class have been grouped together to enable parity in treatment. ********** The Bill seeks to achieve the above objects.5. (emphasis supplied) 12.It is significant, as expressly stated, in the Statement of Objects and Reasons, that the Central Excise Tariffs are based on the HSN and the internationally accepted nomenclature was taken into account to "reduce disputes on account of tariff classification". Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the HSN. This being the expressly acknowledged basis of the structure of Central Excise Tariff in the Act and the tariff classification made therein, in case of any doubt the HSN is a safe guide for ascertaining the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed of blocks of wood kept together in place between outer plies is a block board and block board is included within the expression "similar laminated wood" for the purpose of bringing it within the heading "Plywood, veneered panels and similar laminated wood" which is Heading No. 44.08 in the Indian Tariff as it is in Heading No. 44.12 of the HSN. 14.The mere fact that on account of the dispute raised by the manufacturers, Chapter Note 5 was amended w.e.f. 19-3-1990 to bring it in line with the corresponding explanatory note in the HSN and the expression "glued together" used therein was enlarged by a further amendment therein w.e.f. 1-3-1992 to read "glued or otherwise joined together" does not indicate that block board was not included in the expression "similar laminated wood" in Heading No. 44.08 as it stood from the beginning. It is significant that no amendment was made in the Heading and that the amendment was made only in the explanatory note. The exercise of amendment of Chapter Note 5 was ex abundante cautela merely to clarify and make explicit that which was implicit earlier in the expression "similar laminated wood" since the identical heading was lifted from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yer." The New Encyclopaedia Britannica, Volume 19, Macropaedia, under the heading "Forestry and Wood Production", in the section "Wood Utilization" at pages 420-21 states - "Veneer - Veneer is a thin layer, or sheet, of wood that is uniform in thickness - ..... ************ "Plywood and laminated constructions. Plywood and laminated constructions are glued-wood products. Although gluing is an old art, practiced since ancient times the modern development of various products was made possible by the improvement of glues - especially by the production of synthetic resin adhesives. Plywood is a panel product manufactured by gluing together one or more veneers to both sides of a veneer solid wood, or reconstituted wood core (....). In the case of solid-wood-core plywood and reconstituted-wood-core plywood, an additional intermediate step is the production of cores, which are made by lateral gluing of blocks or strips of wood or by gluing oriented wood chips or flakes with resin adhesives." ************ "Another important glued product is laminated wood....." In Vol. 7, Micropaedia, at page 123, it says - "lamination, in technology, the process of building up successive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cal expression in the same context in the HSN. In the HSN, block board is included within the meaning of the expression "similar laminated wood" in the same context of classification of block board. Since the Central Excise Tariff Act, 1985 is enacted on the basis and pattern of the HSN, the same expression used in the Act must, as far as practicable, be construed to have the meaning which is expressly given to it in the HSN when there is no indication in the Indian Tariff of a different intention. 19.In our opinion, the expression "similar laminated wood" in Heading No. 44.08 as it stood from the beginning must be construed to include within it block boards of all kinds so that the amendment in Chapter Note 5 w.e.f. 19-3-1990 and thereafter w.e.f. 1-3-1992 merely clarified and made explicit that which was implicit in the heading throughout. These amendments were obviously made to end the dispute raised by the manufacturers by an express statement. Any further discussion with reference to the definitions in the ISI Glossary is unnecessary for the reason already indicated. 20.The result is that the decision of the Tribunal reported in 1992 (60) E.L.T. 668 and that of the High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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