COLLECTOR OF CENTRAL EXCISE, HYDERABAD versus BAKELITE HYLAM LTD.

Citation: [1997] 2 S.C.R. 825 · Decided: 10-03-1997 · Supreme Court of India · Bench: A.M. AHMADI · Disposal: Case Partly allowed

Judgment (excerpt)

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COLLECTOR OF CENTRAL EXCISE, HYDERABAD 
A 
V. 
BAKELITE HYLAM LTD. 
MARCH 10, 1997 
[A.M. AHMADI, CJ. AND SUJATA V. MANOHAR, J.] 
B 
Excise Law: 
Central Excises and Salt Act, 1944 : 
Entry 15-A(2) or 68-Laminated sheet~lassification of - Held : C 
Decorative laminated sheets, Industrial laminated sheets (paper based) and 
glass epoxy laminated sheet~lassifiable under Entry 68 and not under 
Entry 15-A(2). 
Entry 15-A(2)-Scope of-Held: Does not cover composite commodity D 
consisting of materials described in Entry 15-A( 1) in combination with other 
materials such as laminated sheets consisting of paper or glass fa bric as also 
resins. 
Section 3-"Manufacture"-Scope of-{ndustrial laminated sheets 
(paper based) and glass epoxy laminated sheets-Such sheets cut into requi-
E 
site shape and holes punched in order to fit them as insulators-Held : does 
not amount to manufacture. 
Central Excise Tariff Act, 1985 : 
Entries 3920.31/3920.37 or 4818.90/4823.9()-{)ecorative laminated F 
sheet~lassification of-Held : Classifiable under Entry 3920.31/3920.37 
and not under Entry 4818.90/4823.9(}-Generd Rules for Interpretation of 
Schedule I, Rules 1, 2(b) and 3 of Chapter 39, Note 1 and Chapter 48, Note 
1 (/)-Central Excise Tariff Bill, 1985. 
G 
· Tariff ltems-{nterpretation of-Hannonised System of Nomenclature 
and its explanatory notes-Relevancy of-Held : Relevant. 
Entry 8546/7014, Ch. 39 and Note 2(n) thereto-Entry 8546/7014 or 
Ch.39-lndustrial laminated sheets (paper based) and glass epoxy laminated 
sheet~lassification of-Held: Classifiable under Entry 8546/7014 and not H 
825 
826 
SUPREME COURT REPORTS 
[1997] 2 S.C.R. 
' 
A under Ch. 3<;:-That such sheets were required to be cut in requisite shape and 
punched before being fitted as insulators, immaterial. 
B 
Entry 39.20-Scope of-Held : Unlike Entry 15-A(2) of the 1944 Act, 
Entry 39.20 of the 1985 Act covered even sheets of plastics combined with 
other materials. 
Refwul-:C:laim of Held : To be processed in accordance with the 
decision in Maj at/al Industries' case. 
Words and Phrases : 
C 
"Manufacture"-Meaning of-ln the context of S.3 of the Central Ex-
cises and Salt Act, 1944. 
The respondent manufactured three varieties of laminated sheets : 
(1) Decorative laminated sheets; 
D 
(2) Industrial laminated sheets which were paper based and; 
(3) Glass Epoxy laminates sheets. 
The classification lists prior .to 28-2-1986 were governed by the First 
E Schedule to the Central Excises and Salt Act, 1944 (Old Tariff). 
With effect from 28-2-1986 the Central Excise Tariff Act, 1985 came 
into force. Hence the classification lists after 28-2- 1986 were governed by 
the Central Excise Tariff Act, 1985 (New Tariff). There have been some 
changes in the relevant Tariff Entries under the Central Excise tariff Act 
F 
of 1985 from 1.3.1988. The description of the material tariff entries, how-
ever, had not been affected by the changes made in the Central Excise 
Tariff Act of-1985 with effect from 1.3.1988, except for a change in the 
number of the entry. 
According to the appellant all the laminated sheets manufacture by 
G the respondent were sheets of plastic material falling under Tariff Entry 
15-A(2) of the Old Tariff. According to the respondent the laminated 
~heets were niade up of composite material consisting of either paper or 
glass fabric as also. resins and hence they would fall under the residuary 
Entry 68. The Customs, Excise and Gold (Control) Appellate Tribunal 
H upheld the claim of the respondent. Hence this appeal. 
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COLLECTOR OF CENTRAL EXCISE v. BAKELITE HYLAM LTD. 
827 
On behalf of the appellant it was contended that the laminated A 
sheets, which consisted of a combination of paper and synthetic resins, has 
to he classified under Entry 3920.31; and that industrial laminates and 
glass epoxy laminates could not be considered as electric insulators be· 
cause these sheets were required to be cut in the requisite shape and holes 
have to be punched in them before they could be fitted as insulators. 
On behalf of the respondent it was contended that since paper 
constituted 60 to 80% and resins constituted only 30 to 40% of the product 
the relevant entries were 4818.90/4823.90 as is evident from Note l(t) to 
Chapter 48 of the Central Tariff Act, 1985. 
Allowing the appeal, this Court 
B 
c 
HELD : 1.1. Entry 15-A(2) of the First Schedule to: the Central 
Excises and Salt Act, 1944 (Old Tarim does not refer to any composite 
mat

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