2016 (2) TMI 218 - AT - Central Excise

Tribunal upholds plasticized plywood classification under CETA, 1985

Galaxy Plywood Inds. P Ltd. Versus CCE, Panchkula

The Tribunal ruled in favor of the Revenue, upholding the classification of plasticized plywood under chapter heading 44.08 instead of 44.10 under CETA, ... Classification of plasticized plywood - classifiable under 4410.90 OR under heading 4408.90 - Held that:- The chapter heading 44.08 specifically speaks about plywood, veneered panels and similar laminated wood. Whereas, the chapter heading 44.10 speaks about articles of wood not elsewhere specified. Undeniably, the impugned product does not fall into ‘article of wood’. So the product which is plasticized plywood is classifiable under chapter 44.08 only. Moreover, this Tribunal in the case of Permali Wallace Pvt.Ltd.(2011 (6) TMI 663 - CESTAT, NEW DELHI ) examined the scope of heading 44.08 alongwith chapter Note 5 and held veneered sheets will be classified therein. In the light of the observations made by the Apex Court in the case of CCE, Noida vs. Kitply Industries Ltd. [2011 (9) TMI 3 - Supreme Court of India ] and apply the same, we are of the considered view, that the impugned product is classifiable under chapter heading 44.08. - Decided in favour of the Revenue. Issues:Classification of plasticized plywood under CETA, 1985 during July 2004 to February 2005.Detailed Analysis:The case involved a dispute regarding the classification of plasticized plywood under CETA, 1985 during the period from July 2004 to February 2005. The appellant, engaged in manufacturing plywood, claimed the product fell under heading 4410.90, while the department argued for classification under 4408.90, attracting a duty of 16%. The appellant contended that the product should be classified under heading 4410.90, citing a Tribunal decision and a Supreme Court dismissal of an appeal by the Revenue in a similar case.The Revenue, however, maintained that the product should be classified under tariff item 4408.90, as it fell under the category of 'similar laminated wood' as per Note 5 to chapter 44. The Revenue relied on a Supreme Court judgment in a different case to support their classification argument. The Tribunal noted that the product in question was classifiable under chapter heading 4412 from March 2005 onwards, which was the same as 44.08, encompassing 'plywood, veneered panels, and similar laminated wood.'The Tribunal analyzed the core manufacturing process of the product, which involved plasticized paper on veneer faces, and considered the precedents set by previous Tribunal decisions and the Supreme Court. It highlighted the importance of the term 'similar laminated wood' in the classification process. Referring to the Supreme Court's interpretation of 'similar' in a related case, the Tribunal concluded that the impugned product should be classified under chapter heading 44.08, which specifically covered plywood, veneered panels, and similar laminated wood.In light of the legal precedents and the specific classification criteria under CETA, 1985, the Tribunal ruled in favor of the Revenue, dismissing the appeal and upholding the classification of the plasticized plywood under chapter heading 44.08. The judgment emphasized the importance of interpreting the relevant chapter headings and notes to determine the correct classification of the product in question.In conclusion, the Tribunal's detailed analysis focused on the specific classification criteria, legal precedents, and the interpretation of relevant chapter headings and notes to resolve the dispute over the classification of plasticized plywood under CETA, 1985 during the specified period.