2000 (3) TMI 506 - AT - Central Excise

Summary

Issues:
Classification of 'pre-laminated particle boards' under Chapter Heading 44.06 or 44.08 of the Central Excise Tariff.

Analysis:
1. The main issue in this case was the classification of 'pre-laminated particle boards' manufactured by the respondent company. The Commissioner of Central Excise (Appeals) classified the goods under Chapter Heading 44.06, while the Revenue sought to restore the original classification approved by the Assistant Commissioner under Chapter Heading 44.08. The central question was whether the goods should be classified as particle boards or laminated wood.

2. Chapter Heading 44 pertains to "wood and articles of wood," with Sub-heading 44.06 covering "particle board and similar board of wood or other ligneous materials" and Sub-heading 44.08 covering "plywood, veneered panels and similar laminated wood." The Commissioner's order highlighted the requirement for the product to be surfaced with outer plies or panels to be classified under 44.08, which was lacking in this case. The Commissioner concluded that the goods should be classified under 44.06 as particle boards, not under 44.08 as laminated wood.

3. The Revenue contended that the Commissioner's classification was erroneous, citing Note 5 to Chapter 44, which includes products like blockboard, laminboard, and battenboard under 44.08. During the hearing, the argument focused on whether pre-laminated particle boards should be considered as panels where the wooden core is replaced by materials like particle board. The Revenue emphasized that the core being surfaced with outer plies is only necessary for specific products like blockboard, not for panels.

4. The respondent's counsel argued that all varieties of particle boards, including pre-laminated ones, should be classified under 44.06. They pointed out that veneered particle boards are explicitly mentioned under Sub-heading 44.06.30, supporting the classification of pre-laminated particle boards under 44.06. The counsel also referenced Indian Standard specifications, showing that laminated particle boards are recognized as particle boards, and noted that products covered by Note 5 are distinct from particle boards.

5. After considering the arguments from both sides, the Tribunal found that pre-laminated particle boards are a recognized variety of particle boards and do not lose their classification as particle boards even after lamination. The Tribunal emphasized that the lamination process does not fundamentally alter the nature of the particle board. Therefore, the Commissioner's classification under Sub-heading 44.06 was deemed appropriate and in line with the classification scheme in Chapter 44, including Note 5. Consequently, the Revenue's appeal was dismissed for lacking merit.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved, the arguments presented by both parties, and the reasoning behind the Tribunal's decision regarding the classification of pre-laminated particle boards under the Central Excise Tariff.