TMI Blog2002 (6) TMI 478X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect that the Department s contention is based solely on the fact that it is shown as a manufactured item in the HSN. However, the fact remains that this fact corroborates the finding of the adjudicating Officer regarding the classification. In the light of the above discussions, the finding of the adjudicating officer that the subject goods are liable to a duty of excise and the consequent confirmation of demand are upheld. The appeal is rejected . 2. The facts of the case in brief are that the appellant is a manufacturer of Pressed Wool Felt and Felt Components; that carding of wool is an essential intermediate process. Therefore, it was alleged that w.e.f. 23-7-96 since Central Excise Duty was imposed on carded wool, therefore, the assessee was required to file a declaration under Rule 173B declaring therein carded wool . It was noticed that during the months of April and May, 97, the assessee had availed full exemption from duty under SSI Notification No. 16/97, dt. 1-4-97 on Pressed Wool Felt cleared in the months of April and May. However, the Carded Wool cleared in the month of April and May, 1997 and consumed captively was liable to duty as it did not qualify for exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not tenable for the reason that wool tops are one form of carded wool which are bought and sold; that the form of scoured wool that arises after carding in the manufacture of Pressed Wool Felt is Lap Wool a guage like form unlike wool top which is in the form of fibres wound on a spool; that scoured wool after carding needs to undergo several more processes in order to take the form which is commercially known as wool top; that in the manufacture of Pressed Wool Felts, processing of scoured wool ends with carding; that in the manufacture of wool tops, process of combing is the first process after carding. Ld. Counsel submits that process of carding and combing does not amount to manufacture. In support of this he cites and relies upon the decision of this Tribunal reported in 1999 (114) E.L.T. 994. 6. Regarding submission of the classification list No. F/002, dt. 22-8-96 ld. Counsel submitted that it was filed involuntarily and without prejudice to the contention that the process of carding does not result in manufacture of carded wool, as permission for export of pressed wool felts under Bond was not being granted. Ld. Counsel submits that excisability being a question of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ods so produced must qualify the test of marketability; that the Hon ble Supreme Court further held that consequently it was always open to an assessee to prove that even though the goods in which he was carrying on business were excisable goods being mentioned in the Schedule but they could not be subjected to duty as they were not goods either because they were not produced or manufactured by it or if they had been produced or manufactured, they were not marketable or capable of being marketed. Ld. Counsel submits that further in this decision the Hon ble Supreme Court held that intermediate goods produced or used for captive consumption are not liable to duty if not marketable, notwithstanding the fact of their being specified in Tariff Schedule. Ld. Counsel refers to the case of Union Carbide of India Ltd. v. UOI reported in 2000 (126) E.L.T. 383 decided by the Hon ble Allahabad High Court submits that it was held that an article will be leviable with excise duty only if it is excisable i.e. it is mentioned in or covered by one of the items mentioned in the First Schedule to the Act (ii) it has come into existence as a result of some manufacturing process, and (iii) it answers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts that the fact remains that carded wool was brought in the tariff in 1996; that pursuant to this, the appellant filed a classification declaration classifying carded wool under tariff chapter sub-heading 5105.10. He submits that since carded wool was specified item in the tariff and since the declaration was filed by the appellants, therefore, normally it should be taken as the understanding of the assessee that carded wool was an excisable product. He submits that the authorities below have held that carded wool is like wool tops and since wool tops were marketable, therefore, carded wool even if in the form of laps of wool are marketable. He submit that the authorities below have examined both excisability as well as marketability. Reiterating the findings of the authorities below, he prays that the appeal may be rejected. 17. We have heard the rival submissions. Two issues arise for determination in this appeal in addition to subsequent application of two notifications. 18. The first two issues are whether carded wool is goods i.e. whether it is a manufactured product. The second issue is whether it is excisable. For first issue whether these are goods we note that the ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sification must, as far as possible, be resolved with reference to the nomenclature indicated by the HSN unless there be an express different intention indicated by the Central Excise Tariff Act, 1985 itself. The definition of a term in the ISI Glossary, which has a different purpose, cannot, in case of a conflict, override the clear indication of the meaning of an identical expression in the same context in the HSN. In the HSN, block board is included within the meaning of the expression similar laminated wood in the same context of classification of block board. Since the Central Excise Tariff Act, 1985 is enacted on the basis and pattern of the HSN, the same expression used in the Act must, as far as practicable, be construed to have the meaning which is expressly given to it in the HSN when there is no indication in the Indian Tariff of a different intention . 19. This decision of the Apex Court has been further upheld by the Apex Court in a number of cases. These decisions of the Apex Court and the rulings clearly showed that carded wool is goods. Therefore, the first question whether the items are goods or not has been answered in the affirmative. Let us now examine the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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