Manufacture by process: waxing particle board created a distinct commercial commodity, supporting classification under Heading 4406.90.

Waxing plain particle board was treated as manufacture because the process gave the product water-proofing qualities and a distinct commercial identity, name and use. The Tribunal applied the principle that a process amounts to manufacture where it produces a commercially different commodity for tariff purposes. On that basis, waxed particle board was classified under Heading 4406.90 rather than as plain particle board, and the assessee's classification claim failed. The lower orders were affirmed and the appeals were dismissed.

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Issues: (i) Whether waxing of plain particle board amounted to manufacture and produced a distinct commodity classifiable under Heading 4406.90 rather than as plain particle board.

Analysis: The Tribunal held that the tariff scheme under the Central Excise Tariff Act, 1985 treated particle boards in separate varieties, and that waxed particle board acquired water-proofing qualities, a distinct name and a distinct use. It relied on the principle that a process may amount to manufacture where the resulting product is commercially different and on precedents recognising waxing as giving rise to a new commodity.

Conclusion: The waxed particle board was correctly classified under Heading 4406.90, and the assessee's classification claim failed.

Final Conclusion: The lower orders were affirmed and the appeals were dismissed.

Ratio Decidendi: Where a process such as waxing changes the commercial identity, name and use of goods so that the resulting product is a distinct commodity, the process amounts to manufacture for tariff classification purposes.

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