TaxTMI 
TaxTMI 
1997 (12) TMI 634
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....chedule till February 28,1988 and under Heading 4823.90 of the said Schedule on and after March 1,1988 as found by the Customs Excise & Gold [Control] Appellate Tribunal [hereinafter referred to as 'the Tribunal']. M/s Wood Polymers Ltd., the respondent in Civil Appeals Nos.1852-53 of 1991, manufactures (i) paper based decorative laminated sheets, (ii) cotton fabric based laminates and (iii) paper based insulators electrical grade. The said products were classified by the Assistant Collector of Central Excise under Chapter 39 sub-Heading 3920.21. The said classification was approved in appeal by the Collector of Central Excise (Appeals). On further appeal by the assessee, the Tribunal, by its judgment dated March 6,1990, held that paper based decorative laminated sheets/boards are classifiable under sub-heading 4818.90 till February 28, 1988 and under Heading 4823.90 on and after March 1,1988, and that cotton fabric based laminates are classifiable under Heading 3922.90 till February 28.1988 and under Heading 3926.90 on and after March 1,1988. As regards paper based insulators it was held that same are classifiable under Heading 8546.00. In taking the said view the Tribunal has fo....
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....ed sheets were classifiable under Heading 3920.31/3920.37 of the New Tariff. In respect of industrial laminated sheets and glass epoxy laminated sheets it was held that they had been correctly classified by the Tribunal under Heading 7014/8546 of the New Tariff. In view of the judgment of this Court in Bakelite Hylam Ltd., (supra) the decision of the Tribunal holding that paper based insulators manufactured by M/s Wood polymer Ltd.,[respondents in Civil Appeals Nos. 1852-53 of 1991] are classifiable under Heading 8546 of the New Tariff must be upheld since it is in consonance with the decision of this Court in Bakelite Hylam Ltd., (supra). The only question that remains is with regard to classification of paper based decorative laminated sheets/boards and cotton fabric based laminated sheets. Shri F.S.Nariman, the learned senior counsel appearing for the respondents in Civil Appeals Nos. 1852-53 of 1991, has, however, urged that the decision of this Court Bakelite Hylam Ltd., (supra) does not lay down the correct law and it needs reconsideration in so far as it related to classification of paper based decorative laminated sheets. In order to deal with the said submission of Shri....
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....ty is the 'common parlance test', i.e., the sense in which the product is understood in the trade parlance or commercial usage and understanding. The learned counsel has submitted that paper based decorative laminates are manufactured by passing several sheets of duty paid kraft paper through resin bath and are impregnated with a chemical solution classified a resin solution (phenol formaldehyde solution). It is submitted that the paper based decorative laminates are, therefore, primarily paper falling in Chapter 48 dealing with paper and paper board, articles of paper pulp and does not fall in Chapter 39 which deals with plastic and articles thereto. It is submitted that this Court Bakelite Hylam Ltd., (supra) has considered the question in the light of Rule 3 of the Rules of Interpretation and had not examined the trade parlance and commercial of traders, dealers and users, expert opinions, trade literature and marketing material were produced before the authorities to show that the decorative laminates are in commercial parlance are not known as plastic and are not sold, marketed and used as article of plastic. We are unable to accept the said contention of the learned counsel.....
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....48.14. (d) Products consisting of glass fibres or sheets of paper, impregnated with plastics and compressed together, provided they have a hard, rigid character.(If having more the character of paper or of articles of glass fibres they are classified in Chapter 48 to 70, as the case may be.)" In has been pointed out that Explanatory Note clearly provides that sheets of paper impregnated with plastics and compressed together, as in the present case, provided they have a hard, rigid character would fall under Chapter 39 and if having more the character of paper or of articles of glass fibres they are classified in Chapters 48. Since the decorative laminated sheets are hard and rigid in character, they are classifiable under Chapter 39 and not under Chapter 48. Shri Nariman has placed reliance on the decision of this Court in Moti Laminates Private Ltd. v. Collector, 1995 (76) ELT 241 (SC), wherein it has been held that Phenol Formaldehyde (Resol) is not "goods" capable of being bought and sold. Shri Nariman has also submitted that classification of decorative laminated sheets can be determined under Rule 1 of the rules of interpretation which reads as under : &n....
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....ates". The submission is that the insertion of the said new entry in Chapter 48 has to be regarded as legislative recognition of the commercial understanding that decorative laminates is an article of paper because products known commercially as decorative laminates have been included in the said entry falling in Chapter 48 which relates to paper and paper boards. We are unable to accept this contention. Decorative laminates have been mentioned in the entry falling in sub-Heading 4823.40 which has been inserted in Chapter 48 presumably in view of the decisions of the Tribunal holding that paper based decorative laminated sheets fall under Chapter 48. The insertion of the said entry in Chapter 48 does not, in out opinion, mean that the interpretation placed by this Court in Bakelite Hylam Ltd. (SUPRA) on the entries, as they stood prior to insertion of the entry falling in sub-heading 4823.40, is not correct and it needs reconsideration. We are, therefore, unable to accept the contentions urged on behalf of the respondents seeking reconsideration of the decision of this Court in Bakelite Hylam Ltd. (supra). In accordance with the law laid down in Bakelite Hylam Ltd. (supra) it mu....
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.... Government, Being satisfied that it is necessary in the public interest so to do, hereby exempts goods falling under subheading No. 4823.90 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than products consisting of sheets of paper or paper board impregnated, coated or covered with plastics, compressed together in one or more operation, from so much of the duty of excise leviable thereon which is specified in the said schedule as is in excess of the amount calculated at the rate of 12% ad valorem." The said notification was subsequently replaced by Notification No. 20/94-C.E. dated March 1, 1994 which was in the following terms : "Notification No. 20/94-C.E.dated 1.3.1994 In exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods of the description, specified in column (3) of the Table hereto annexed and falling within the Chapter or sub-heading Nos. of the Schedule to the Central Excise Tariff Act, 1985 (5 of....