TaxTMI 
TaxTMI 
1989 (12) TMI 194
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....n of the goods under heading 39.13 (sub-heading 3913.30) of the Schedule. By the second order, the Assistant Collector directed the manufacturers to pay an amount of Rs. 27,75,341.66 as central excise duty on the goods cleared during the period prior to the introduction of the new Tariff Schedule on 1-3-1986. The appellants have, however, made it clear in the appeal memorandum that the present appeal is against the Collector's order in so far as it has rejected the appeal in respect of the classification lists filed after the 1986 Budget. 3. The basic issue for determination thus is whether vulcanised fibre sheets or body sheets were classifiable under heading 39.13 (sub-heading 3913.30) or heading 39.20 [sub-heading 3920.22] as held by the Assistant Collector or under sub-heading 3920.31 as held by the Collector (Appeals). 4. In this context, it is necessary to note straightaway that vulcanised fibre is specified in sub-heading 3913.30 of the Schedule which reads as follows :- "39.13 Natural polymers (for example, alginic acid) and modified natural polymers (for example, hardened proteins, chemical derivatives of natural rubber) not elsewhere specified or include....
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.... only in four primary forms, namely, (i) sheets, (ii) rolls, (iii) rods and (iv) tubes. In support of this contention he relied on Indian Standard IS: 4819-1968 entitled "Specification for thin vulcanised Fibre sheet (including leatheroid) for electrical purposes". Para 0.2 of this specification reads as follows :- "Vulcanized fibre is made by combining layers of chemical gilled paper. The chemical compound used in gilling the paper is subsequently removed by leaching, and the resulting product, after being dried and finished by calendering, is a dense material of partially regenerated cellulose in which the fibrous structure is retained in varying degrees, depending upon the grade of fibre. It is made in four primary forms - sheets, rolls, rods and tubes." Attention was also drawn to the Departmental Chemical Examiner's report (extracted at page 63 of the appeal paper book). The report dated 2-1-1987 reads :- "Thus from above Vulcanised Fibre a plastic material is generally in the form of rods, tubes, sheets, plates and strips. There appears (sic) to be no stage prior to this." Reference was also drawn to an earlier test report dated 22-10-1982 which reads :- "In vi....
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....est, he relied on the reasoning set out in the impugned order in support of the Revenue's stand. 10. We have considered the submissions of both sides. As noted earlier, the Departmental Chemical Examiner has stated that vulcanised fibre emerges during manufacture in the form of tubes, rods, sheets and rolls. He has also stated that there appeared to be no stage prior to this. IS: 4819-1968 (Para 0.2) also supports the contention of the appellants that vulcanised fibre is made in four primary forms, namely, rods, sheets, rolls and tubes. Looking at the process of manufacture as set out in the Indian Standard (see para 0.2 extracted earlier) involving combining layers of chemically gilled paper, removing the chemical used for treatment, drying the resultant product and finishing by calendering, it would appear that the primary form cannot be 'fibre' as the term is normally understood - as for example, cotton fibre, synthetic fibre, etc. The appellants have also placed on record the specification for vulcanised fibre for electrical purposes published by the International Electrotechnical Commission, Geneva, which also states as follows :- "2. Definitions. 2.1 Vulcanized Fibre....
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....would not be covered by the expression "primary forms". Therefore, if any unspecified form is to be held to be covered by the expression, it has to be a bulk form similar to the forms specified in the note. Sheets, though one of the primary forms in which vulcanised fibre is produced, are possessed of a definite form and shape and does not fit into the forms specified in the note. Since 'sheets' happen to be one of the primary forms, one can take it that it is a bulk form of vulcanised fibre which has to be fabricated for specific end-uses. But it is not similar to the forms specified in the note. It would, therefore, appear that though sheets constitute a primary form of vulcanised fibre, they would not be covered by the meaning of the expression "primary forms" as given in the statutory note. The result then would be that sub-heading 3913.30 specifying vulcanised fibre would be rendered totally nugatory since vulcanised fibre is apparently produced only in the form of rods, sheets, rolls, tubes and strips. 11. It is a well-settled proposition of law that words in a statute should be so construed as to give them a meaning and make them work and not as to render them nugatory. I....