Holding

Arc‑carbons are taxable under Entry 4, dry‑cell batteries under Entry 38 except those marked for transistors (Entry 3), and block boards are classified under Heading 44.08 (similar laminated wood).

Summary

The Supreme Court considered two sets of appeals. In Union Carbide India Ltd. v. State of Andhra Pradesh it examined whether dry‑cell batteries and arc‑carbons were taxable under the higher‑rate entries 3 or 4 of the Andhra Pradesh General Sales Tax Act, 1957 or under the lower‑rate residuary entry 38. The Court held that arc‑carbons, whose predominant use is in cinema projectors, fall under entry 4, and that dry‑cell batteries are taxable under entry 38 except those expressly marked for use in transistors, which fall under entry 3. In Collector of Central Excise v. Wood Craft Products Ltd. the issue was the proper classification of block boards under the Central Excise Tariff Act, 1985. Relying on the Harmonised System of Nomenclature, the Court held that block boards are “similar laminated wood” and therefore fall within heading 44.08 (sub‑heading 4408.90) and not under heading 44.10. Both appeals by the revenue were allowed and the special leave petitions by the manufacturers were dismissed.

Issues considered

Whether dry‑cell batteries manufactured by Union Carbide are assessable under Entry 3 or Entry 38 of the Andhra Pradesh General Sales Tax Act, 1957.
Whether arc‑carbons manufactured by Union Carbide are assessable under Entry 4 or Entry 38 of the Andhra Pradesh General Sales Tax Act, 1957.
Whether block boards should be classified under Heading 44.08 (similar laminated wood) or Heading 44.10 (articles of wood not elsewhere specified) of the Central Excise Tariff Act, 1985.

Legislation cited

Andhra Pradesh General Sales Tax Act, 1957s. Entry 3, s. Entry 38, s. Entry 4
Central Excise and Salt Act, 1944
Central Excise Tariff Act, 1985s. Chapter Note S, s. Heading 44.08, s. Heading 44.10

Subjects

sales taxgeneral sales taxentry classificationdry batteriesarc carbonsexcise dutytariff classificationblock boardsimilar laminated woodHSNAndhra PradeshCentral Excise

Judgment

UNION CARBIDE INDIA LTD. A
v.
STATE OF ANDHRA PRADESH

MARCH 20, 1995

(J.S. VERMA, S.P. BHARUCHA AND K.S. PARIPOORNAN, JJ.} B

Andl1ra Pradesh General Sales Tax Act 1957-First Schedule-Dry cell
batteries' and 'arc carbons'-whether exigible to tax under Entry 3 or Entry
38 of the first schedule to the Act.
c
~· The assessee company manufactured dry cells and arc carbons, and
the question arose as to.whether they were liable to a higher rate under
entry 3 or 4 as wireless reception instruments or cinematographic equip-
ment respectively, or a lower rate under entry 38 relating to all electrical
goods, of the first schedule of the Andhra Pradesh General Sales Tax Act
1957 for the assessment years 1969-70. The Tribunal held that dry cell D
batteries were taxable under entry 38 except those specified for use in
transistors which would fall under entry 3, while arc carbons were taxable
under entry 4. The revision petitions filed by the assessee were dismissed
by the High Court. Hence these appeals and special leave petitions.
E
Dismissing the matters, this Court

HELD:l. The main use of the arc carbons was duly proved to be that
of production of powerful light used in projectors in cinemas. The fact that
they can also .be used for search lights, signalling, stage lighting, or where
powerful lighting for photography or other purposes might be' required F
could not detract from the classification to which the arc carbons belong.
That is determined by their common purpose or user. This is evident from
the fact that they. are known as 'cinema arc Carbons' in the market. The
goods are cov~red by ,_entry 4. [789-E-G)

Annapooma Carbon Industries v. State of A.P., (1976) 37 STC 378, G
relied on.

2.1 Dry batteries are called primary cells which are different from
accumulators, secondary cells or storage batteries. For this reason dry
batteries cannot be treated as storage batteries for the purpose of entry . H
785
r
/
786 SUPREME COURT REPORTS [1995) 2 S.C.R.

A 137 or accumulators for the purpose of entry 3. (792-H, 794-F]
i.2 The expression 'accessories thereor in entry 3 indicates that the
entry can be attracted only if the dry batteries or cells can be treated as
accessories of the wireless reception instruments etc. specified in entry 3
or else they would fall under entry 38 as other accessories of all electrical
B goods ~eing the residuary entry. The dry cells or batteries used in transis-
tors manufactured by the assessee alone during the pre-1976 period may
fall under entry 3. However batteries not specified for use in transistors y
alone cannot be treated as 'accessories thereor of wireless reception
instruments etc., for the purpose of entry ~. Applying the test, it cannot be \. '
C hel~/~hat dry batteries or cells which are not market 'for Transistors' and
were multi-purpose cells manufactured for predominant use as accessories
of the wireless instruments to fall under entry 3 so that they could not be
treated as 'other accessories' for the purpose of attracting entry 38.
[794-G, H, 795·A·E]
D Hamlyn All-Colour Science Encyclopedia; the Chambers Science and
Technoiogy Dictionary and New Encyclopedia Britannica, Vol.I. page 963,
referred to.

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos.102 and
961of1977.
E
From the Judgment and Order dated 5.2.76 o{the Andhra Pradesh
High Court in T.R.C. No. 19 and 18of1975.

Dr. D.P. Pal, C. Sitaramiah, Mrs. AK. Verma, P.D. Tyagi for J.B.D.
& Co., Ms. Priya Hingorani, Kamini Jaiswal, G. Prakash, Ms. T.V.S.N.
p Char~ S.R. Agrawal, Gautam Khaitan, AN. Arora (NP) and B. Parthasar-
thy for the appearing parties.

The Judgment of the Court was delivered by

J.S. VERMA, J. These appeals by special leave are against the
G judgment dated 5.2.1976 in Tax Revision Case Nos. 18 and 19 of 1975, by
the High Court of Andhra Pradesh. The two questions answered by the
High Court relate to the assessment years 1968-69 and 1969-70 which are:

(1) Whether dry cell batteries manufactured by the assessees are
exigible to tax under Entry No. 3 or Entry No. 38 of the First Schedule to
H the Andhra Pradesh General Sales Tax Act, 1957?
UNION CARBIDE(I) LTD. v. STATE(J.S. VERMA,J.] 787

(2) Whether the arc carbons manufactured by the assessees are A
. ;;r: exigible to tax under Entry No. 4 or Entry No. 38 of the First Schedule to
the Andhra Pradesh General Sales Tax Act, 1957?

The Tribunal held that the "dry cell batteries" are taxable under Entry No.
38 except only those which are specified for use in transistors, which alone
are taxable under Entry No. 3; and the "arc carbons" are taxable under
B
Entry No. 4. The revisions file<l by the assessee have been dismissed by the
High Court. Hence these appeals by special leave. The connected matters
are similar and are disposed of in terms of this judgment.

The relevant entries with reference to which the above questions are C
to be decided, at the material time, were as follows :-

"3. Wireless reception instruments and At the point 12 paise m
apparatus, radios, and radio grama- of first sale in the rupee
phones, electrical valves, accumulators, the state
amplifiers and loud-speakers and spare D
parts and accessories thereof.{b).
4. Cinematographic equipment including 12 paise in
cameras, projectors and sound recording the rupee
and reproducing equipment lenses, films -do-
and parts and accessories required for use E
therewith.
38. All electrical goods, instruments, 8 paise in the
apparatus and appliances including fans rupee
-do-
and lighting bulbs electrical earthenware
and procelain and all other accessories. F
The assessee contends for taxing of these articles at the lower rate
under Entry No. 38 and not at the higher rate under Entry Nos. 3 or 4.

We shall first consider the question relating to "arc carbons". The
only argument on behalf of the assessee is that the carbon is us.ed up and, G
therefore, it cannot be an accessory of the equipment specified in Entry
No. 4. On this basis, the assessee claims that arc carbon used in the
equipment is taxable under Entry No. 38 at a lesser rate. The High Court
following its earlier decision held that arc carbons manufactured by the
assessee were assessable under Entry No. 4 and not Entry No. 38. That H
T

788 SUPREME COURT REPORTS (1995) 2 S.C.R.

A view of the Andhra Pradesh High Court has been approved by this Court
in A111iap11111a Carbon /11d11suies Co. v. State of Andlzra Prade~}J. I1976) 37 ...,._
S.T.C. 378, and it was held that arc carbons fell within Entry No. 4 of the
First Schedule to the Act. It was held by this· Court that :

"...... The meaning of this entry can only be satisfactorily deter-
B mined in the light of the language of the entry itself considered in
the context in which it occurs.

The entry No. 4 occurs in a schedule in which descriptions of
goods to be truced indicate that the expression "required for ~e
therewith" has been employed for equipment or accessories con-
c nected with the main purpose. For instance, in entry No. 5, the
expression occurs at the end as follows:

"Photographic and other cameras ·and enlargers, lenses, films
and plates, paper and cloth and other parts and accessories re-
D quired for use therewith."

Apparently, the deciding factor is the predominant or ordinary
purpose or use. It is not enough to show that the article can be
put to other uses also. It is its general or predominant user which
seems to determine the category in which an article will fall.
E
..... Again, entry No. 3 for "wireless reception instruments an
apparatus" includes "electrical valves, accumulators, amplifiers and
loud-speakers and spare parts and accessories thereor. The words
"parts thereof' are used in several entries, such as entry No. 6 for
F clocks, time-pieces and watches, entry No. 10 for dictaphones and
other similar apparatus for recording sound, and entry no. 11 for
sound transmitting equipment such as telephones and loud-
speakers.

Our object in indicating the nature of entries, amidst which
G entry No. 4 occurs, is to show that some precision has been
attempted in making the entries. When it was intended to confine
the entry to particular gadgets and "parts thereof' the entry said
so. Of course, even where~ an entry relates to parts manufactured
for use for a particular kind of instrument or gadget only, the
H article, manufactured to serve as a part of a particular kind · of
UNIONCARJ31DE(I)LID.v. STATE(J.S. VERMA,J.) 789

apparatus, would not cease to be covered by the intended entry A
simply because a purchaser makes some other use of it. We have
to find the intention of the framers of the schedule in making the
entry in each case. The best guide to their intentions is the language
actually employed by them.

We find that the term "accessories" is used in the schedule to B
describe goods which may have been manufactured for use as an
aid or addition. A sense in which the word "accessory" is used is
given in Webster's Third New International Dictionary as follows:
"an object or device that is not essential in itself but that adds to
the beauty, convenience, or effectiveness of something else". Other c
meanings given there are : "Supplementary or secondary to some-
.,,,- thing of greater or primary importance"; "additional"; "any of
I

several mechanical devices that assist in operating or oontrolling
to tone resources of an organ". "Accessories" are not necessarily
confined to particular machines for which they may serve as aids.
The same item may be an accessory of more than one kind of D
instrument.

It will be noticed that the entry we have to interpret includes
"parts" as well as "accessories" which are required for use in
projectors or other cinematographic equipment. We think that the E
.Andhra Pradesh High Cowt comctly held that the main use of the
arc carbons under consideration was duly proved to be that of
production of powerful light used in projectors in cinemas. The fact
that they can also be used for searchlights, signalling, stage lighting,
or where powerful lighting for photography or other purposes may
be required, could not detract from the classification to which the F
carbon arcs belong. That is detemtined by their ordinary or com-
monly known purpose or user. This, as already observe.d by us, is
I
,/ evident from the fact that they are known as "cinema arc carbons"
in the market. This finding was enough, in our opinion, to justify
the view taken by the Andhra Pradesh High Court that the goods G
under consideration are covered by the relevant entry No. 4."

(emphasis supplied)
(at pages 380-81)
A plea on behalf of the assessee for reconsideration of the decision H
r
790 SUPREME COURT REPORTS [1995] 2 S.C.R.

A of this Court in Annapurna Carbon Industries Co. (supra) was made. We
find no ground to that submission. We may add that the decision had held
the field for all these years and we do not find any reason to doubt the
correctness of that decision. It must, therefore, be held that the decision
of the High Court that arc carbons are taxable under Entry No. 4 of the
B First Schedule to the Act does not call for any interference.

We now consider the question relating to dry battery cells. The
matters involving this question are of two broad categories. One category
· relates to the period prior to certain amendments made in the Act in 1976
while the other category of matters relates .to the period subsequent to that
C amendment. For the period prior to the 1976 amendment, the dry cell
batteries only of Union Carbide India Ud. which bore on it the mark "for
transistors" were held to be taxable under Entry No. 3 at a higher rate while
the multi-purpose dry cell batteries of all the assessees which did not bear
any such mark were held to be taxable at the lesser rate under Entry NQ.
38. Accordingly, for the period prior to 1976, the only aggrieved assesse~
D is the Union Carbide India Ltd. in respect of its batteries bearing the mark
"for transistors" which were .assessed at the higher rate under Entry No. 3
while the State is aggrieved by assessment of the remaining dry cell
batteries of all assessees under Entry No. 38. For this reason, there are
cross appeals by the Union Carbide India Ud. and the State relating to
·E the period prior to 1976 amendment.

For the post-1976 period, the High Court has held that all dry cell
batteries, after the amendments in the Act, are taxable only under Entry
. No. 38. Accordingly, the State alone has preferred the appeals in this behalf
F for the post-1976 period.

All the appeals ·are considered together since they involve for
decision the common question of taxability of dry cell batteries. The I
r
contention of the learned counsel appearing for the assessee is that the dry ~
G cell batteries are taxable only under Entry No. 38 for the entire period. On
the other hand, the contention on behalf of the State Government is that
all such batteries are taxable throughout only under Entry No. 3. In the
alternative, it was urged that after the 1976 amendment effective from
1.9.197~, the dry cell batteries are taxable under Entry 137 as it then stood
but not under Entry No. 38. It was submitted that Entry No. 3 is attracted'
H because dry cell batteries are "accessories" of wireless reception instru-
UNION CARBIDE (I) LTD. v. STATE (J.S. VERMA, J.) 791

ments etc. even if not "accumulators"; and that it is not "accessories" of A
"electrical goods" due to which Entry No. 38 is excluded. In short, the
contention on behalf of the State is that a "dry cell battery" is either an
"accumulator" or "storage battery" or an "accessory" of wireless reception
instruments etc. to fall under Entry No. 3 throughout or Entry No. 137
w.e.f. 1.9.1976 but not an "accessory" of "electrical goods" to fall under B
Entry No. 38. The question for decision, therefore, is whether the view
taken that dry cell batteries fall within Entry No. 38 is incorrect on the
grounds urged by the State. Only in respect of Union Carbide India Ltd.
for the pre-1976 period, the question also is : Whether the dry cell batteries
marked "for transistors" were wrongly assessed to be taxable under Entry
No. 3 instead of Entry No. 38? C

At this stage, relevant entries as they stood after the amendment
made in 1976 and 1985 may also be quoted :

With effect from 1.9.1976:- D
"3. Wireless reception instruments and At the point 12 paise in
apparatus, radios and radio gramaphones, of first sale in the rupee
electrical valves, accumulators, amplifiers the state
and loud-speakers and spare parts and
accessories thereof. (1003) E
38. All kinds of electrical goods, 8 paise in the
instruments, apparatus and appliances -do- rupee
that is to say -
(i) Wires, holders, plugs, switches,
F
electrical earthenware and procelain
ware;
(ii) Casings, cappings, reapers, bends,
junction boxes, meter-boxes, switch-boxes,
meter-boards and switch boards other
those made of wood
G
(iii) Electrical fans, lighting bulbs, torches,
fluorescent tubes and their fittings, like
chokes and starters and other parts and
accessories thereof;
H
r
792 SUPREME COURT REPORTS (1995) 2 S.C.R.

A (iv) Electrical grinders, mixers, blenders,
hair driers, shavers, washing machines,
cooking ranges, boilers, ovens, geysers,
generators, transformers and parts and
accessories thereof;
B (v) Electronic systems, instruments,
apparatus, appliances including electronic
cash registering, indexing card-punching,
franking and addressing machines,
computers of analog and digital varieties,
one record units, osciloscopes and other
c electronic equipment and material and
parts and accessories thereof; (1038)
137. Electrical storage batteries and parts At the point 12 paise tn
thereof including containers, covers and of first sale the rupee
plates (1137) in the state
D
With effect from 1.7.1985 :-
152. Dry batteries or cells• (and parts and At the point *(10) paise
accessories thereof). of first sale in the. rupee
in the state
E • Rate of tax on item 152 reduced from 11 paise to 10 paise and
the bracked words added-by G.O.Ms. No. 630, Rev., dt. 30.5.1986
w.e.f. 1.6.1986 and later by Act 19 of 1986 .w.e.f. 1.8.1986

The subsequent amendments show that with Entry No. 152 specifically
F providing for "dry batteries or cells" while Entry No. 3 remained the same,
since then "dry batteries or cells" cannot come under Entry No. 3 in view
of the specific Entry No. 152. The question is whether prior to the specific
provision being made in Entry No. 152 for dry batteries or cells, Entry No.
I
-~
r
3 had to be preferred or it was Entry No. 137 w.e.f. 1.9.1976 which included
"dry batteries or cells". To come under Entry No. 137 which is the altema-
G tive argument advanced on behalf of the State Government, dry batteries
\
or cells must fall within the meaning of "storage battery" and for attracting \,.,.
Entry No. 3 it must fall within the expressions "accumulators" or "acces- '
sories thereof". We shall presently show that dry batteries or cells are not
"storage batteries" or "accumulators". The real question therefore would be
H whether they can be called "accessories" of wireless reception instruments
- UNION CARBIDE (I) LTD. v. STATE (J.S. VERMA, J.) 793

etc." to fall within Entry No. 3. This is because the expression is "accessories A
~ thereor:
In Hamly11 All-Colour Science Encyclopedia the "accumulators" are
described as: (·

"The accumulator does not make electricity in the way that the dry B
battery does. Electricity has to be put in before any can be taken
out. The same amount of electricity can be obtained from an
accumulator as was put into it."

On the other hand dry batteries arc called a primary cell which is different
from an accumulator, secondary cell or storage battery. C
In Chambers Science and Technology Dictionary, "accumulator" is
defined as:

"Voltaic cell which can be charged and discharged. On charge,
when an electric current is passed through it into the positive and D
out of the negative terminals (according to the conventional direc-
tion of flow of current), electrical energy is converted into chemical
energy. The process is reversed on discharge, the chemical energy,
less losses both in potential and current, being converted into
useful electrical energy. Accumulators therefore form a useful
portable supply of electric power, but have the disadvantages of E
being heavy and of being at best 70% efficient. More often known
as battery, also called reversible cell, secondary cell, storage bat-
tery" .

and storage battery is mentioned to be the same as an accumulator. F
Primary cells and primary batteries or dry batteries or cells are
understood in common parlance as well as in technology to be different
.Y form accumulators or storage cells.

In The New Encyclopedia Britannica, Vol. I, at page 963, it is stated G
that,
'/ J
"There are two major types of voltaic cells: primary batteries and
secondary, or storage, batteries. (The latter are sometimes also
called accumulators.) Primary cells are constructed in such a way
that only one continuous or intermittent discharge can be obtained. H
r
794 SUPREME COURT REPORTS (1995) 2 S.C.R.

.A Secondary devices, on the other hand, are constructed so that they
can be discharged and then recharged to approximately their
original state. The charging process is the reverse of the discharge
process; therefore, the electrode reactions in these batteries must
be reversible.

'. B "Primary batteries" are defined as

"Several varieties of primary cells are available. These include dry,
wet, and solid electrolyte. Dry cells are not actually dry but contain
an aqueous electrolyte that is unspillable or immobilized. Many of
c these cells are sealed to prevent seepage of the electrolyte or
reactiop. products. Common examples of such primary batteries
are atj.dic dry cells (e.g. carbon-zinc cells), used in flashlights, toys,
and certain transistorized portable radios; alkaline dry cells,
employed in camaras, tape records, and electric razors; and mer-
cury cells, utilized in hearing aids and photographic flash guns."
D
and "Secondary batteries" are defined as

"Such batteries consist of an assemblage of several identical voltaic
cells. Of the various types of storage batteries available, the lead-
acid type is the most widely used. It serves as the power source
E for the electrical systems of many kinds of motor vehicles, par-
ticularly automobiles and· trucks. It is also commonly used to
provide electricity for emergency lighting and communication cir-
cuits......"

F For this reason, dry batteries or cells cannot be treated as "storage
batteries" for the purpose of Entry No. 137 or "accumulators" for the
1 purpose of ~ntry No. 3. '

The expression "accessories thereof' in Entry No. 3 indicates that
Entry No. 3 can be attracted only if the dry batteries or cells can be treated
G as accessories of the wire reception instruments etc. specified in Entry No.
3 or else they would fall under Entry No. 38 as "other accessories" of "all
/electrical goods" being the residuary entry. The dry cells or batteries
marked for use in transistors as is the case of some such batteries manufac-
tured by the Union Carbide India Ltd. alone during the pre-1976 period,
H may fall under Entry No. 3 as held by the High Court. However, multi-pur-
UNION CARBIDE (I) LTD. v. STATE [J.S. VERMA, J.] 795

pose batteries, not specified for use in transistors alone cannot be treated A
as "accessories thereof'' of wireless reception instruments etc. for the
purpose of Entry No. 3.

In Annapurna Carbon Industries Co., significance is attached to use
of the word "thereof'' and it was indicated that the deciding factor is the
predominant or ordinary purpose or use and it is not enough to show that B
the articles can be put to other uses also. It was held therein that the
general or predominant use seems to determine the category in which an
article will fall. On a comparison made between the different entries in
which the term "accessories" is used in the Schedule to describe goods, it
was shown that the word was construed taking into account the fact C
whether the goods have been manufactured for use as an aid or addition
to any of the specified articles in that entry or not. It was also pointed out
that when it was intended to confine the entry to particular gadgets and
particulars thereof, the entry said so; and, therefore, the expression "acces-
sories thereof'' must mean the general or predominant user of the article
only as an accessory of one of the specified items mentioned in that entry. D
Applying that test, it cannot be held that dry batteries or cells which were
not marked "for transistors" and were multi-purpose cells were manufac-
tured for predominant use as accessories of the wireless reception instru-
ments etc. to fall under Entry No. 3 so that they could not be treated as
"other accessories" of "all electrical goods" for the purpose of attracting E
Entry No. 38.

At this stage, it is also useful to refer to a clarification made by the
Board of Revenue by a circular dated 7.1.1977 which reads as follows:

"B.P.Rt.No. 29/1977 Board of Revenue (C.T.) F
Hyderabad D/7-1-1977

Shri A. Krishnaswamy, l.A.S.,
Commissioner of Commercial Taxes.

Sub.: Andhra Pradesh General Sales tax Act, 1957 Rate of G
tax on dry battery cells - Clarification issued

Ref: Representation dated 27.9.1976 from M/s. lndo Nation-
al Limited, Nellore - H
796 SUPREME COURT REPORTS [1995) 2 S.C.R.

A The trade has requested the Board· to daru;·:~~~ ·.;~te. '~{ tu ··
applicable to dry battery cells. ·

The Board has examined the issue and is of the view that dry
battery cells would be of two types :

B 1. Those labelled for a special use such as transistor batteries.
The rate of tax would depend on the rate leviable on the
goods for which they are labelled as being an accessory. In
the case of transistor batteries, they would be subjected to
tax as accessories of radios.
c
2. Those that are not labelled for special use, such dry cells
would be liable to tax falling under entry 38 of the 1st
Schedule to the Andhra Pradesh General Sales Tax Act 1957,
i.e. 'Electrical Goods' liable to tax at 8% at the point of 1st
sale in the State.
D
Sd/- T. Jesudanam
Asstt. Commissioner (CT)"

(at page 120 from paperbook
E of CA. Nos. 4537-39/1986)

The above circQlar is of significance to indicate the manner in which these
entries were understood and construed even by the Department which is
in accord with the construction made of the entries by the High Court. ·
F
For the above reasons, we do not fmd any infirmity in the ".iew taken
by the High Court on any of the two questions which it has decided. There
is no ground to interfere in any of these appeals. .\

Consequently, all the appeals and the special leave petition are
G dismissed. No costs.

S.K. Appeals and Petitions are dismissed.
COLLECTOR OF CENTRAL EXCISE, SHILLONG A
-/ v.
WOOD CRAFT PRODUCTS LTD. ETC. ETC.

MARCH 20, 1995

(J.S. VERMA, S.P. BHARUCHA AND K.S. PARIPOORNAN, JJ.] B

~ ~ntral Excise Tariff Act, 1985-Classijication of block board.

( Indian Tariff-Heading Nos. 44.08 and 44.1~ block board is
included in "similar laminated wood" under Malling No. 44.08. c
---r /

A dispute arose between the manufacturers or block board and th.e
revenue in respect or classification or block board ror the purpose of lft)'
or excise duty. Under the Central Excise Tariff Act, 19is, "Plywood,
veneered panels and similar laminated wood" are classifted under BeHlna
No. 44.08 or the Indian Tariff whereas "articles or woods not elHwheft D
specifted "are classified under Beading No. 44.10. The manuracturen
contented that block board falls under heading No. 44.10 Sub-beadi111 No.
4410.90 whereas the revenue contended that tilock board is covered by the
expression "Similar laminated wood" in Beading No. 44.08 Sub- headiq
No. 4408.90. E
11ae manufactures relied upon ~e ISi Glossary or Terms in support
or their contention. On the other hand, the revenue contended that the
tariff structure is based on a system or classiftcation derived from the
Bnassels' Convention on the Harmonised Commodity Description ·and
coding system (Harmonised system or Nomenclature called the HSN). F

~
BeadiB& No. 44.12 or HSN ls the same as Beading No. 44.08 or the Indian
Tariff and the explanation to the said Beading No. 44.12 or HSN expressly
includes block board in the said Beading. The revenue, therefore, con·
tended t.hat block board ls included under "similar laminated wood" in
Heading No. 44.08.
G
--.J The custom Excise and Gold (Control) Appellate Tribunal held that
the block boards fall under the Beading No. 44.10, sob-heading No.
4410.90.

With effect from 19.3.1990, amendment was made in chapter 44 in H
797
r

798 SUPREME COURT REPORTS [1995) 2 S.C.R.

A the Central Excise Tariff Act and Chapter Note 5 was introduced and block
boards "in which the core in thick and composed of blocks, laths or battens
of wood glued together and surfaced with the outer plies "was included
under the expression "similar laminated wood" for the purpose of Heading
No. 44.08. The Guahati High Court relying upon amended chapter 44 held
that from 19.3.1990 only those block boards which are put together by
B adhesive or glue in between would fall under Heading No. 44.08, sub-head·
ing No. 4408.90. \

Thereafter, with effect from 1.3.1992, another amendment was made
,,
in chapter Note S including block boards "i.n which the core is thick and l
C composd of blocks, laths or battens of wood glued together or otherwise
.joined together and surfaced with the outer plies "under the expression .-~
"similar laminated wood", For this period, the Guahati High Court held
that all kinds of block boards whether glued together or joined and kept
in place by any other mode fall under heading No. 44.08, Sub-heading No.
4408.90.
D
On appeals by the manufactures as well as the revenue, this Court.

HELD:l. As expressly stated in the statement of objects and Reasons
of the Central Excise Tariff Bill, 1985 which led to the enactment of Central
Excise Tariff Act, 1985 the Central Excise Tariff are based on the HSN and
E the internationally accepted nomenclature was taken into account to
"reduce disputes on account of tariff classification." This being the express·
ly acknoweldged basis of the structure of Central Excise Tariff in the Act
and the tariff classUlcation made therein, in case of any doubt, the HSN
is a safe guide for ascertaining the true meaning of any exprssion used in
F the Act. (806-D-E]

2. A comparison of chapter 44 is the Central Excise Tariff Act, 1985
and the corresponding chapter in the HSN of the Customs Cooperation
Council shows that they are similar. For this reason, the expression
G "similar laminated wood "in the identical heading in the Indian tariffs and
the HSN should have the same meaning since the pattern of the Indian
tariffs of the classification made therein is based on the HSN. (806-G]

3.1. HSN in the explanatory note expressly says that block board is
"similar laminated wood" wherein the core is thick and composed of blocks
H and surfaced with outer plies. All kinds of block board answer to this
•
COLLECTOR OF CENTRAL EXCISE v. WOOD CRAFf PRDTS. LTD. 799

description being comprised of the core composed of blocks which are A
-y joined together and surfaced with outer plies. [807-B]

3.2. The meaning of the expression "similar laminated wood" in the
heading "Plywood, Veneered panel and similar 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 B
meaning of the relevant words used in the expression. The word "similar"
is expansive and not restrictive like "same". Thus some resemblance with
--,,,
, "plywood" or "veneered panels" is enough provided that 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 c
- -r liberal construction of the wide Heading No. 44.08 cannot accommodate
"block board" wihtin it. (808-C-E]

3.3. The expression "similar laminated wood "in Heading No. 44.08 as
it stood from the beginning must be construed to include within it block
boards of all kinds so that the amendment in chapter Note S w.e.f. 19.3.1990 D
and thereafter w.e.f. 1.3.1992 merely clarified and made explicit that which
· was implicit in the beading througbtout. The amendments were obviously
made to end the dispute raised by the manufacturers by an express state-
ment. (810-H, 811-A]

3.4. The definition of a term in the ISi Glossary, which has a different E
purpose, cannot, in case of a conflict, override the clear meaning of an
identical expression in the same context in the HSN. (810-E]

Nat Steel Equipment Private Ltd. v. Collector of Central Excise, (1988)
34 ELT 8 S.C.; Oxford Endyclopedic English Dictionary, New Encyclopaedia

-,/ Britannica, Miccropaedia, referred to.

CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 1315-18
OF 1990 Etc. Etc.
F

From the Judgment and Order dated 18.10.89 of the Central Excise G
and Salt Act, 1944 of the Customs Excise and Gold (Control) Appellate
--~ Tribunal, New Delhi in A.No. E/1672/88-D, E/1673/88-D, E/1674/88-D and
E/1721/88-D Order No. 427-30of1988-D.

Joseph Vallapally, J.P. Bhattacharjee, P. Chidambaram, KK.
Venugopal, H.N. Salve and P.K. Goswami, A.K. Srivastava, V.K. Verma, H
800 SUPREME COURT REPORTS (1995) 2 S.C.R.

A D.S ..Mehra, N.R. ChoJJdhary, So~nath M~kherjee, M.L.· Lahoty: Ms:
Shipra Khazanchi, P.S. Jha, Atishi Dipankar, P.P. Tripathi, D.N. Mehta,
Dr. Meera Aggarwal, R.C. Mishra for Aggarwal & Mishra Co., Khaitan &
Co., (NP), Narender Kaushik, A.K. Sharma, Kailash Vasdevand and M.P.
Shorawala for the appearing parties. ·

B The Judgement of the Court was delivered by

J.S. VERMA, J. The main question for decision in these appeals and
the connected matters is whether "block boards" are to be classified under
Heading No. 44.08, Sub-heading No. 4408.90 as claimed by the revenue or
C under Heading No. 44.10, Sub-heading No. 4410.90 as claimed by the
manufacturers. of block boards. The controversy relates to three periods,
namely, from 28.2.1986 to 19.3.1990, from 20.3.1990 to 28.2.1992 and from
1.3.1992 onwards. The division into three periods is on account of the fact
that an amended Chapter Note S in Chapter 44 was introduced w.e.f.
D 19.3.1990 on account of the controversy which had been raised about the
classification of block boards and, thereafter, w.e.f. 1.3.1992 a second
amendment was made in Chapter Note S on account of the surviving
controversy even after the amendment made w.e.f. 19.3.1990. These appeals
and the connected matters relate to these three periods.

E 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
classificaiton would be under Heading No. 44.10, Sub-heading No. 4410.90.
This decision being in favour of the manufacturers, the appeals relating to
F 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. 39n-4020/94 are
by the revenue against the decision. For the third period, the writ petitions
G 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.

At the outset, the competing headings with reference to which the
H question has to be decided may be quoted. They are as under:-
/'

COLLECIUR OF CENTRAL EXCISEv. WOOD CRAFI"PRDTS. LTD. p.s. VERMA, J.) 801
"44.08 Plywood, veneered panels and similar laminated wood A
4408.10 Marine plywood an aircraft plywood 30% '
4408.20 Plywood for tea-chests when cut to size
in panels or shocks and packed in sets 30%
B
4408.30 Decorative plywood

4408.40 Cuttings and trimmings of plywood of width
""I
I
,. -
/ not exceeding S centimeters Nil
\
4408.90 Others 30% c
- -r 44.10 Articles of wood not elsewhere specified 20%
4410.10 Flush door 30%
4410.90 Others 12%
D

With effect from 19.3.1990, amended Chapter Note S in Chapter 44 was
introduced which read as follows:·.

"S. For the purposes of heading No. 44.08 the expression 'similar E
laminated wood' includes block board, laminated board and batten
boar4, in which the core is thick and composed of blocks, laths or
battens of wood glued together and surfaced with the outer plies
and also panels in which the wooden core is rei>lac:ed by other
materials such as a layer or layers of particle board, fibre board, F .
wood waste glued together, asbestos or cork.".

Thereafter with effect form 1.3.1992 a second amendnient was made in
Chapter Note S after which it read as follows: · G
"S. For the purposes of heading No. 44.08 the C1pRllioD 'limillr
laminated wood' indudcs block board, lamin•ted board and batten
board, in which the core is thick and composed of blocb, laths or
battens of wood glued or otherwise joined together and surfaced
with the outer plies and luo pancJs in which the woodea core is H c--
802 SUPREME COURT REPORTS (1995) 2 S.C.R.

A replaced by other materials such as a layer or layers of particle
board, fibre board, wood waste glued together, asbestos or cork."

"Block board" has not been. expressly specified in any entry. The
revenue contends that "block board" is covered by the expression "similar
B laminated wood" in the heading "Plywood, veneered panels and similar
laminated wood" of Heading No. 44.08 and, therefore, falls under the
sub-heading No. 4408.90 - "other" which is the residuary Sub-heading. On
the other hand, the manufacturers of block board contend that it is an
"article of wood" and, therefore, falls under Heaading "articles of wood not -~

elsewhere specified" of Heading No. 44.10, Sub-heading No. 4410.90 -
C "other" which is t~e residuary entry since it is not "similar laminated wood".
The basis of the rival contentions is that according to the manufacturers
such an indication flows from the ISi Glossary of Terms, while according
to the revenue the structure of the central excise tariff in the Central Excise
Tariff Act, 1985 is the adoption of a detailed central excise tariff based
D broadly on the system of classification derived from the International
Convention called the Brussels' Convention on the Harmonised Com-
modity Description and Coding System (Harmonised System of Nomencla-
ture called "HSN") with the necessary modifications. The revenue contends
that the expression "similar laminated wood" in Heading No. 44.08 express-
ly includes block board, laminated wood and batten board, in which the
~ E 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 con-
tends that this is how the expression was always understood in the HSN
which is the pattern adopted while enacting Central Excise Tariff Act,
F 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
amendments made in Chapter note 5 were only with a view to clarify this
position and end the controversy which was raised by the manufacturers
G relating to construction of these headings in the Act. On this basis, the
revenue urges that the Tribunal's decision relating to the first period from
28.2.1986 to 19.3.1990 reported in 1992 (60) E.L.T. 668 and of the High
Court for the second period from 20.3.1990 to 28.2.1992 reported in 1993
(66) E.L.T. 245 deserve to be reversed maintaining the decision of the High
Court for the third period from 1.3.1992 onwards which is against the
H 1 manufacturers. It is obvious that in the event of the revenue succeeding in
' ,
COLLECfOROFCENTRALEXCISEv. WOODCRAFTPRDTS. LTD. (J.S. VERMA,J.] 803

respect of the first period, it must follow that the revenue must succeed for A
the other two period also. It is equally obvious that for the third period
from 1.3.1992 onwards, in view of the clear wording of lhe. amended
Chapter Note 5 w.e.f. 1.3.1992, the question is beyond controversy since
the expression "glued or otherwise joined together" has been added in
Chapter Note 5 to make it beyond controversy that block boards of all
kinds fall witin the expression "similar laminaed wood". B

It is significant that Heading No. 44.12 of the HSN is the same as
Heading No. 44.08 of the Indian Tariff and reads "Plywood, veneered
panels and similar laminated wood". The explanaotry notes on the HSN
( indicate the meaning of the expression "similar laminated wood" as under:-
c
"Similar laminated wood. This group can be divided into two
categories:

Block board, lamin board and batten board, in which the core is
thick and commposed of blocks, laths or battens of wood glued D
together and surfaced with the outer plies. Panels of this kind are
very rigid and strong and can be used without faming or backing."

It is clear that if the expression "similar laminated wood" in the Indian
Tariff is understood as it meant under the HSN on which pattern the
Central Excise Tariff Act is based, then block boards of all kinds would E
fall within the expression "similar laminated wood". This is how the
amended Chapter Note reads expressly. The question is whether it can be
so read even for the earlier periods particularly the first period before
amendment of Chapter Note 5 to expressly include block board in the
expression "similar laminated wood".
F
The ISi Glossary contains the following definitions:-

'Laminated wood - An assembled product made up of layers of
wood and adhesive in which the grains of adjacent layers are
parallel. G
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 H
804 SUPREME COURT REPORTS (1995) 2 S.C.R.

A (See Fig.)."

The Tribunal has taken the view that the block boards manufactured
by these manufactures 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
B is under Heading No. 44.10 which specifies the flush doors as a specific
category and other articles of wood not elsewhere specified would all under
the residuary sub-heading No. 4410.90. Reliance was placed on the defini-
tions in the ISi Glossary.

C 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 by way of glue or metal fastener is used to hold the blocks -
together and where the blocks jof woods are separately laid, they are
D "otherwise joined together" to form a slab and, therefore, such block boards
could fall under Heading No. 44.08, sub-heading No. 4408.90 in the light
of Chapter Note 5 as amended from 1.3.1992 but in the absence of the
words "or otherwise joined" from Chapter Note 5 as introduced w.cl.
19.3.1990, only block boards in which the eQre is composed of blocsk of
woods "glued together" would fall under Heading No. 44.08, Sub-heading
E No. 4408.90 during the second period between 20.3.1990 to 28.2.1992. In
other words, for the second period the High Court took the view that the
only block boards in which blocks of wood arc put together by applying
adhesive or glue in between, could fall under Heading No. 44.08, sub-head-
ing No. 4408.90 in view of Chapter Note 5 as introduced w.c.f. 19.3.1990
F prior to its further amendment w.e.f. 1.3.1992. After the further amendment
made in Chapter Note 5 w.c.f. 1.3.1992 by enlargement of the expression
"glued together" to "glued or otherwise joined together", the High Court
for the third period commencing from 1.3.1992 held that all kinds of block
boards whether glued together or joined and kept in place by any other
mode fall under the Heading No. 44.08, Sub-heading No. 4408.90.
G
Having heard learned counsel for the parties, we are satisfied that
the contention of the revenue must be accepted with the result that the
decision of the Tribunal reported in 1992 (60) E.L.T. 668 for the first ·
period and that of the High Court reported in 1993 (66) E.L.T 345 for the
ff second period must be reversed, while the decision dated 17.3.1993 of the
COLLECTOR OF CENTRAL EXCISE v. WOOD CRAFT PRDTS. LID. (1.S. VERMA, 1.) 805

High Court against the manufacturers for the third period commencing A ·
·. 7 from 1.3.1992 must be affirmed.

The. Statement of Objects and Reasons of the Central Excise Tariff
Bill, 1985 which led to the enactment of the Central Excise Tariff Act, 1985
is indicative of the pattern of the structure of the central excise tariff
enacted therein. It reads as under: B

"Central Excise duty is now levied at the rates specified in the
"t-
First Schedule to the Central Excises and Salt Act, 1944. The
( Central Excises and Salt Act, 1944 originally provided for only 11
I

_,...,.,
items. The number of Items has since increased to 137. The levy,
which was selective in nature, to start with, acquired a comprehen-
c
sive 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.

2. The Technical Study Group on Central Excise Tariff, which D
wsa 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 boradly on
the system of classification derived from the International Conven-
tion on the Harmonised Commodity Description and Coding Sys-
tem (Harmonised system) with such contractions or modifications
E
thereto as are necessary to fan 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.
j F
3. The tariff suggested by the Study Group is based on an
internationally accepted nomenclature, in the formulation of which
all considerations, technical and legal, have been taken into account.
It should, there/ore, reduce disputes on account of t(lriff classification.
Besides, since the tariff would be on the lines of the Harmonised
System, it would bring about considerable alignment between the G
,) cusotms and central excise tariffs and thus facilitate charging of
additional customs duty on imports equivalent to excise duty.
Accordingly, it is proposed to .specify the Central Excise tariff sug-
gested by the Study Group by a separate tariff Act instead of the
present system of the tariff being governed by the First Schedule a
r

806 SUPREME COURT REPORTS (1995) 2 S.C.R.

A to the Central Excises and Salt Act 1944.

4. The main features of the bill are as follows :-

(i) The tariff included in the Schedule to the Bill has been made
more detailed and comprehsnsive, thus obviating the need for
B having a residuary tariff Item. Goods of the same class have been
grouped together to enable parity in treatment.

xxx xxx xxx
5. The Bill seeks to achieve the .above objects
c (emphasis supplied)

It is significant, as expressly stated, in the Statement of Objects and
Reasons, that the central excise tariffs are based on the HSN and the
internationally accepted nomenclature was taken into account to "reduce
D dispues on account of tariff classification". Accordingly, for resolving any
dispute relating to tariff classification, a safe guide is the internationally
. accepted nomenclature emerging from the HSN. This being the expressly
acknowledged basis of the structure of central excise tariff in the Act and
the tariff classification made therein, in case of any doubt the HSN is a
safe guide for ascertaining the true meaning of any expression used in the
E Act. The ISi Glossary of Terms has a different purpose and, therefore, the
specific purpose of tariff classification for which the internationally ac-
cepted nomenclature in HSN has been adopted, for enacting the Central
Excise Tariff Act, 1985, must be preferred, in case of any difference
between the meaning of the expression given in the HSN and the meaning \
F of that term given in the Glossary of Terms of the ISi.
A comparison of Chapter 44 in the Central Excise Tariff Act, 1985
and the corresponding chapter in the HSN (Harmonised system of
Nomenclature) of the Customs Cooperation Council (CCC) shows that
they are similar. Heading No. 44.08 of the Indian Tariff is "Plywood,
G veneered panels and similar laminated wood" which is identical to Heading
No. 44.12 of the HSN. For the reason, the expression "similar laminated
wood" in the identical heading in the Indian tariffs and the HSN should
have the same meaning since the pattern of the Indian tariffs of the
classification may therein is based on the HSN. The explanatory note in
H the HSN expressly includes block board in "similar laminated wood". The
COLLECTOR OF CEN1RAL EXCISE" WOOD CRAFf PRDTS. LID. (J.S. VERMA, J.j 807

word used in the expression is "similar" and not "same" which means that A
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
B
.....,_ 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

'
i
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
C
significant for classification of the article as block board. The fact that all.
kinds of block boards irrespective of the manner in which the blocks
composing the core are kept together in place are known as block boards,
makes this evident. It is clear that any article having a core composed of D
blocks of wood kept together in place between outer plies is a block board
and block board is included within the expression "similar laminated wood"
for the purpose of bringing it within the heading "Plywood, veneered panels
and similar laminated wood' which is Heading No. 44.08 in the Indian tariff
as it is in Heading No. 44.12 of the HSN.
E
The mere fact that on account of the dispute raised by the manufac-
turers, Chapter Note 5 was amended w.e.f. 19.3.1990 to bring it in line with
the corresponding explanatory note in the HSN and the expression "glued
together" used therein was enlarged by a further amendment therein w.e.f.
1.3.1992 to read "glued or otherwise joined together" does not indicate that F.
block board was not included in the expression "similar laminated wood"
in Heading No. 44.08 as it stood from the beginning. It is significant that
no amendment was made in the Heading and that the amendment was
made only in the explanatory note. The exercise of amendment of Chapter
Note 5 was ex abundante cautela merely to clarify and make explicit that
which was implicit earlier in the expression "similar laminated wood" since G
' j
the identical heading was lifted from the HSN wherein an explanatory note
existed, including block board in the expression "similar laminated wood".
In our opinion, the express provision made for "flush doors" in Heading
No. 44.10, Sub-heading No. 4410.10 is no indication, in the context, that
block board must beclassified as an article of wood not elsewhere specified H
I
r

808 SUPREME COURT REPORTS (1995) 2 S.C.R.

A under Heading No. 44.10, Sub-heading no. 4410.90 - "others". It merely
means that "flush door" being expressly classified under Heading No. 44.10,
Sub-heading No. 4410.10, is taken out of the ambit of "similar laminated
wood" in Heading No. 44.08 leaving the rest ·included in that expression
untouched. We do not think that the specification of "flush door" under
B Heading No. 44.10, Sub-heading No. 4410.10 has the effect of also exclud-
ing block board from "similar laminated wood" in Heading No. 44.08,
Sub-heading No. 4408.90.

The meaning of the expression "similar laminated wood" in the
heading "Plywood, veneered panels and similar laminated wood" given in
C 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
D 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
E liberal construction of the wide heading No. 44.08 cannot accommodate
"block board" within it.

The significant words are "plywood", "veneered panels" and
"laminaetd wood" with reference to the meaning of which, the ambit of
Heading no. 44.08 has to be determined. In the Oxford Encyclopedic \
F English Dictionary, the meaning given are:

Plywood • a strong thin board consisting of ·two or more layers
glued and pressed together with the direction of the grain alter-
nating."
G
"Blockboard • a plyood board with a core of wooden strips."

"Lamination - the manufacture by placing layer on layer."

The new Encyclopaedia britannica, Volume 19, Macropaedia, under the
H heading "Forestry and Wood Produc.tion", in the section "Wood
~ . utilizatimt"
COLLECTOR OF CENTRAL EXCISEv. WOOD CRAFT PRDTS. LTD. (J.S. VERMA, J.I 809

at pages 420-21 states - A
"Veneer. Veneer is a thin layer, or sheet, of wood that is uniform
in thickness - ....

xxxx xxx xxx
B
"Plywood and laminated constructions. Plywood and laminated
constructions are glued-wood products. Although glUing is an old
art, practiced since ancient titn.es the m,oderti developm,ent of
various produets was ma.4e p0sSible by the improvement of glues
- especially. by the. pi'o4uction of synthetic resin adhesives.
c
Ptywood. is a panel product manufactured by gluing together
one or· more veneers to both sides of a veneer solid wood, or
reconstituted wool core (.....). In the case of solid-wood-core
plywood, an additional intermediate step is the production of
cores, which are made by lateral gluing of blocks or strips of wood D
or by gluing oriented wood chips or flak.es with resin adhesive.

xxxx
"Another important glued product is laminated wood... ,.."
E
In Vol.7, Micropaedia, at page 123, it says -

"lamination, in technology, the process of building up successive
layers of a substance suc;h as wood or textiles, adn bonding them
with resin to form a finished product. Laminated board,' for ex-
ample, consists of thin layers of wood bonded together; ......" F
The meaning of the significant words and description of the wood
products as intermediate materials meant for manufacture of final products
clearly indicate that "laminated wood" means a wood product prepared by
placing layer on layer and "block board" is a plywood board with a core of
wood. Any plywood board with a core of wood in which there are layers, G
one above the other is, therefore, laminated wood sitnilar to plywood or,
J veneered panels. It is "similar laminated wood" included in the heeling
"Plywood, veneered panels and similar laminated wood". Similarity with,
and not identity with plywood or veneered panels is required. In Nat Steel
Equipment Private Ltd. v. Collector of Central Excise, [1988] 34 E.L.T. 8 H
1
srn· SUPREME COURT REPORTS (1995) 2 S.C.R.

A (S.C.), while considering the meaning of the word "similar" in a tariff 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 resem-
bling to in many respects; somewhat like; or haivng a general
B 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)
c
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".
D
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 internationlly accepted nomenclature found in the
HSN and, therefore, any dispute relating to tariff classification must, as far
E 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
F the meaning of the expression "similar laminated wood" in the same context
of classificaiton 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 expresssly givne to it in the HSN when there is no indication in
G the Indian tariff of a different intention.
In our opinion, the expression "similar laminated wood" in Heading
No. 44.08 as it stood from the beginning must be construed to include
within it block boards of all kind so that the amendment in Chapter Note
5 w.e.f. 19.3.1990 and thereafter w.e.f. 1.3.1992 merely clarified and made
H explicit tha which was implicit in the heading throughout. These amend-
COLLECTOR OF CENTRAL EXCISE v. WOOD CRAFT PRDTS. LID. (J.S. VERMA, J.J 811

ments were obviously made to end the dispue raised by the manufacturers A
by an express statement. Any further discussion with reference to the
. /'. definitions in the ISi Glossary in unnecessary for the reason already
indicated.

The result is that the decision of the Tribunal reported in 1992 (60)
E.L.T. 668 and that to the High Court in 1993 (66) E.L.T. 345 are reversed, B
while the decision of the High Court dated 17.3.1993 for the third period
commencing from 1.3.1992 is affirmed even though for different reasons
given herein.

Consequently, all the appeals of the revenue are allowed while the
. appeals and SLPs of the manufacturers are dismissed. No costs. C
·----if B.K.M. / Appeals and Petitions dismissed.

' j