Tariff classification of wood products turned on marketability and product structure, with both classifications upheld.

Cuttings and trimmings from plywood were held not classifiable under sub-heading 4408.40 because that entry applies to plywood cuttings and trimmings in the hands of a plywood manufacturer, and the record did not show the goods were marketable as such; the factual finding of non-marketability was upheld. Phenol bonded board was held classifiable under sub-heading 4406.30 because its structure fitted veneered particle board rather than the residuary heading for plywood veneered panels and similar laminated wood under 4408.90. The Revenue's challenge to both classification findings failed, leaving the appellate order undisturbed.

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Issues: (i) Whether the cuttings and trimmings were classifiable under sub-heading 4408.40 and were marketable in the hands of the assessee; (ii) Whether the phenol bonded board was classifiable under sub-heading 4406.30 or under sub-heading 4408.90.

Issue (i): Whether the cuttings and trimmings were classifiable under sub-heading 4408.40 and were marketable in the hands of the assessee.

Analysis: The assessee was engaged in the manufacture of wood and articles of wood, not plywood. The tariff treated plywood and other products separately. Sub-heading 4408.40 applied to cuttings and trimmings of plywood in the hands of the manufacturer of plywood, and not to a user of plywood. The record showed that the cuttings and trimmings were used as fuel and no material established that they were marketable as such or usable in the manufacture of other products. The findings of fact recorded by the appellate authority were not shown to be unsustainable.

Conclusion: The cuttings and trimmings were not liable to be classified under sub-heading 4408.40 in the hands of the assessee.

Issue (ii): Whether the phenol bonded board was classifiable under sub-heading 4406.30 or under sub-heading 4408.90.

Analysis: Chapter Note 5 to Chapter 44 explained the expression similar laminated wood in Heading 44.08. The product contained core and face veneers on both sides, and saw dust mixed with resin was placed within the core and face veneers. Sub-heading 4406.30 covered veneered particle board not having decorative veneers on any face, while sub-heading 4408.90 was a residuary entry for plywood veneered panels and similar laminated wood. On that structure, the classification adopted by the appellate authority was supportable.

Conclusion: The phenol bonded board was correctly classifiable under sub-heading 4406.30.

Final Conclusion: The Revenue's challenge to the classification findings failed, and the order of the appellate authority was left undisturbed.

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