TaxTMI 
TaxTMI 
1995 (3) TMI 93
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....er the amendment made w.e.f. 19-3-1990. These appeals and the connected matters relate to these three periods. 2.For the first period, the Tribunal held in the main judgment dated 18-10-1989 reported in 1992 (60) E.L.T. 668 that block board does not fall within Heading No. 44.08, sub-heading 4408.90 and the more appropriate classification would be under Heading No. 44.10, sub-heading No. 4410.90. This decision being in favour of the manufacturers, the appeals relating to this period are by the revenue. For the second period writ petitions filed by the manufacturers in the Gauhati High Court were allowed by the judgment dated 23-3-1993 reported in 1993 (66) E.L.T. 345 - Arunachal Forests Products Ltd. v. Union of India. Civil Appeal Nos. 3977-4020/94 are by the revenue against that decision. For the third period, the writ petitions filed by the manufacturers in the Gauhati High Court have failed being dismissed by the judgment dated 17-3-1993 and the manufacturers have challenged that decision. 3.At the outset, the competing headings with reference to which the question has to be decided may be quoted. They are as under :- "44.08 Plywood, veneered panels and similar lami....
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....cture of the central excise tariff in the Central Excise Tariff Act, 1985 is the adoption of a detailed central excise tariff based broadly on the system of classification derived from the International Convention called the Brussels' Convention on the Harmonised Commodity Description and Coding System (Harmonised System of Nomenclature called "HSN") with the necessary modifications. The revenue contends that the expression "similar laminated wood" in Heading No. 44.08 expressly includes block board, laminated wood and batten board, in which the core is thick and composed of blocks, laths or battens of wood glued or otherwise joined together and surfaced with the outer plies as clarified by the amendment in Chapter Note 5 which was always the meaning of the expression "similar laminated wood" according to HSN. The revenue contends that this is how the expression was always understood in the HSN which is the pattern adopted while enacting Central Excise Tariff Act, 1985. According to the revenue, the ISI Glossary of Terms being for a different purpose is not the appropriate aid to construction of these headings in the Central Excise Tariff Act. The revenue contends that the amendmen....
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....t made up of layers of wood and adhesive in which the grains of adjacent layers are parallel. Block board - A board having a core made up of strips of wood, each not exceeding 25 mm in width, laid separately or glued or otherwise joined to form a slab which is glued between two or more outer veneers with the direction of the grain of the core blocks running at right angles to that of the adjacent outer veneers (See Fig.)." 8.The Tribunal has taken the view that the block boards manufactured by these manufacturers do not conform to the definition of "laminated wood" given in the ISI Glossary. It further held that the block boards are similar to "flush doors" and, therefore, the more appropriate classification is under Heading No. 44.10 which specifies the flush doors as a specific category and other articles of wood not elsewhere specified would fall under the residuary sub-heading No. 4410.90. Reliance was placed on the definitions in the ISI Glossary. 9.After the amendment made in Chapter Note 5 w.e.f. 19-3-1990 for the period from 20-3-1990 to 28-2-1992, the High Court in 1993 (66) E.L.T. 345 placed reliance similarly on the ISI Glossary to hold that where no artificial means ....
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....ehensive coverage in 1975, when the residuary Item 68 was introduced. Thus, barring a few Items like opium, alcohol, etc., all other manufactured goods now come under the scope of this levy. The Technical Study Group on Central Excise Tariff, which was2. set up by the Government in 1984 to conduct a comprehensive inquiry into the structure of the central excise tariff has suggested the adoption of a detailed central excise tariff based broadly on the system of classification derived from the International Convention on the Harmonised Commodity Description and Coding System (Harmonised system) with such contractions or modifications thereto as are necessary to fall within the scope of the levy of central excise duty. The Group has also suggested that the new tariff should be provided for by a separate Act to be called the Central Excise Tariff Act. The Tariff suggested by the Study Group is based on an3. internationally accepted nomenclature, in the formulation of which all considerations, technical and legal, have been taken into account. It should, therefore, reduce disputes on account of tariff classification. Besides, since the tariff would be on the lines of the Harmonised Sy....
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....ng since the pattern of the Indian Tariffs of the classification made therein is based on the HSN. The explanatory note in the HSN expressly includes block board in "similar laminated wood". The word used in the expression is "similar" and not "same" which means that the block board to be included in this heading need not be the same as laminated wood but similar to it. The ISI Glossary of Terms defines "laminated wood" and "block board" separately to indicate that block board is not included in the definition of "laminated wood" for the purpose of ISI. On the other hand, HSN in the explanatory note expressly says that block board is "similar laminated wood" wherein the core is thick and composed of blocks and surfaced with outer plies. All kinds of block boards answer this description being comprised of the core composed of blocks which are joined together and surfaced with outer plies. This is the basic requirement according to the explanatory note in the HSN to make the article "similar laminated wood". The process by which the core composed of blocks is kept together in place to form the core between the outer plies is not significant for classification of the article as block ....
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....laminated wood" given in the explanatory note to the HSN for Heading No. 44.12 therein, identical to Heading No. 44.08 in the Indian Tariff is also in accord with the general meaning of the relevant words used in that expression. The heading means that it covers "plywood" and "veneered panels" together with all kinds of "similar laminated wood". In other words, treating "plywood" or "veneered panels" as "laminated wood", it covers all kinds of laminated wood bearing any resemblance with "plywood" or "veneered panels". The word "similar" is expansive and not restrictive like "same". Thus, some resemblance with "plywood" or "veneered panels" is enough provided the article can be treated as "laminated wood". The sweep of the heading is, therefore, wide and resort to the residuary Heading No. 44.10 is to be had only when a liberal construction of the wide Heading No. 44.08 cannot accommodate "block board" within it. 16.The significant words are "plywood", "veneered panels" and "laminated wood" with reference to the meaning of which, the ambit of Heading No. 44.08 has to be determined. In the Oxford Encyclopedic English Dictio- nary, the meanings given are : "Plywood - a strong thin b....
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....riff item, in similar context, it was stated thus : "..... The expression "similar" is a significant expression. It does not mean identical but it means corresponding to or resembling to in many respects; somewhat like; or having a general likeness. The statute does not contemplate that goods classed under the words of `similar description' shall be in all respects the same. If it did these words would be unnecessary. These were intended to embrace goods but not identical with those goods......." (at page 10) This test is satisfied. Thus, the meaning given to the expression "similar laminated wood" in the HSN is not any special meaning thereof but the general meaning as understood internationally in the field of "Forestry and Wood Production". 18.We are of the view that the Tribunal as well as the High Court fell into the error of overlooking the fact that the structure of the Central Excise Tariff is based on the internationally accepted nomenclature found in the HSN and, therefore, any dispute relating to tariff classification must, as far as possible, be resolved with reference to the nomenclature indicated by the HSN unless there be an express different intention indicated ....