LexCOLLECTOR OF CENTRAL EXCISE versus MIS. WOOD POLYMERS LTD. ETC.
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A COLLECTOR OF CENTRAL EXCISE v. MIS. WOOD POLYMERS LTD. ETC. DECEMBER 17, 1997 B (S.C. AGRAWAL AND D.P. WADHWA, JJ.J Excise Law: Central Excise Tariff Act, 1985 : c Sub-headings 3920.31/3920.37, 4818.90/4823.40 (as inserted in 1997) and Rules for the Interpretation of the Schedule, Rules 3(b) and I-Ap- plicability of-Paper-based decorative laminated sheets-Held, classifiable under Sub-heading 3920.31 until 28.2.1988 and w.e.f 1.3.1988 under sub- heading 3920.37 and not under Sub-headings 4818.90 or. under D 4823.90-Classiftcation has to be done in accordance with the Rules for the Interpretation of the Schedule and not on the basis of common parlance test-Rule 3(b) and not Rule 1 of the said 1Ules is applicable in the present case-Insertion of new sub-heading 4823.40 in Chapter 48 from 1997 does not enable decorative laminates to be classified under Chapter 48 for the E earlier peliod. Sub-headings 3920.31/3920.37 or 3920.90/3926.90-Cotton fab1ic-based laminated decorative boards-Held, classifiable under Sub-heading 3922.90/3926 .. 90. F Sub-heading 8546.00 or 3920.21-Paper-based insulators elec/:lical grade-Classification of-CEGAT rightly classified it under Sub-heading 8546.00 and not wider Sub-heading 3920.21. Notification No. 135/89-CE dated 12.5.1989-Concession-Paper- based decorative laminated sheets-Whether eligible for concessional rate of G duty under Notification 135/89-CE dated 12.5.1989 for goods falling under Sub-heading 4823.90-Although only Notification No. 144/94-CE dated 22.12.1994 amending Notification No. 20194 dated 1.3. 1994 had excluded decorative laminates from the benefit of the concessional rates, even dwing the preceding pe1iod-Held, not eligible for concessional rate of duty as prior H to 1997 they did not fall under Sub-heading 4823.90-Central Excise Tariff 528 I ; '\I -~ •, C. C. E. i•. WOOD POLYMERS LTD. 529 Act, 1985, Sub-heading 4823. 90---Uoods-Paper based decorative laminated A sheets--Central Excise and Salt Act 1944, Section 5-A. The respondent was a. manufacturer of paper based decorative laminated sheets, cotton fabric-based laminates and paper-based in- sulators electrical grades. These products were classified by the Assistant Collector under Sub-heading 392031 and the same was approved by the B Collector (Appeals). On further appeal, the CEGAT held that paper based decorative laminated sheets/boards are classifiable under sub-heading 4818.90 till 28.2.1988 and under Heading 4823.90 on and after 13.1988, and that cotton fabric based laminates are classifiable under Heading 3922.90 till 28.2.1988 and under Heading 3926.90 on and after 1.3.1988. As regards c paper-based insulators it was held the same was classifiable under Head- ing 8546.00. Hence this appeal by the Revenue. The Revenue contended that the classification of these products concluded in view of the decision of this Court in Bakelite Hy/am* case. The respondent-assessee contended that proper test applicable for clas- D sification was the "common parlance test" and that so tested paper based decorative laminated sheets primarily fell under Chapter 48 and not under Chapter 39 of the Central Excise Tariff Act. It was further contended by the respondent asses see that Rule 1 and Rule 3 of the Rule of Interpreta· tion could be invoked for determining the classification of decorative E laminated sheets. It was also contended by the respondent-assessee that in 1997 insertion of a new Sub-heading 4823.40 in Chapter 48 showed that decorative laminates was an article of paper. Allowing the appeals preferred by the assessee and dismissing the Revenue's appeals, this Court. F HELD : 1.1. In view of the rules regarding interpretation contained in the Central Excise Tariff Act, the matter of classifications has to be considered in the light of the said rules. Since decorative laminates are composite goods made from different components, namely, paper and G chemical solutions with which it is impregnated, the dassification of decorative laminates has to be determined in the light of Rule 3(b). 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 gives them their essential character. Since the decorative laminated sheets are hard and rigid in character, they are classifiable under Chapter 39 and H ,. 530 SUPREME COURT REPORTS [1997) SUPP. 6 S.C.R. A no
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