ORDER
V.P. Gulati, Vice President
1. The issue in the appeal relates to the classification of densified wood in the form of sheets, blocks, plates etc. The material in question as seen from the order of the authorities below is used for electrical insulation purposes. The densified wood blocks, sheets etc. are covered under Chapter Heading 4409. The item was classified however under Chapter Heading 8546 which covers electrical insulators of any material. The learned Collector (Appeals) has confirmed this classification and has relied upon the decision of the Tribunal in the case of Collector of Central Excise v. Metrowood Engineering Works reported in 1989 (43) E.L.T. 660. The decision rendered was in the context of industrial laminates which were electrical insulators in nature and the competing Tariff Heading in that case were 8546.00 and Chapter 39 and the Tribunal in that case took note of the properties of laminated sheets and relied upon the Chapter Note 2(n) under Chapter 39 and held that the item was excluded from the purview of Tariff Heading 39.
2. The learned JDR for the Department has pleaded that densified wood is specifically covered under Chapter Heading 40.09 which reads as under:
“Densified wood, in blocks, plates, strips or profile shape including articles of densified wood.”
He has pleaded the scope of Tariff Heading 40.09 is amplified in Chapter Note 2 of Chapter 44 which reads as under :
“In this Chapter, the expression ‘densified wood’ means wood which has been subjected to chemical or physical treatment (being, in the case of layers bonded together, treatment in excess of that needed to ensure a good bond), and which has thereby acquired increased density or hardness together with improved mechanical strength or resistance to chemical or electrical agencies.”
He pleaded that the manner of formation of the densified wood and the specific properties which are imparted to it by the method of formation as explained in the Chapter Note would determine as to whether the goods in question would fall under Tariff Heading 4409 read with other Chapter Notes under Chapter 44. He has pleaded that there is no dispute that the respondent’s goods as these are formed conform to the parameters as are set out under Chapter Note 2 and those with the property of insulation to electricity which is one of the categories of the goods which are shown to be covered under the description densified wood under Chapter Note 2. He has pleaded that in that view of the matter the respondents’ goods are specifically covered under Chapter Heading 4409, the goods being in the form of blocks, plates and sheets the description as set out under Chapter Heading 4409. He has pleaded the only items which stand excluded can be those falling under Section XVI as set out in Note l(k) which reads as under :
“Articles of Section XVI or Section XVII (for example, machine parts, cases, covers, cabinets for machines and apparatus and wheel-wrights’ wares).”
He has pleaded the articles which stand excluded for assessment purposes under Chapter 44 are formed items and other articles which would stand excluded will have to be such as would correspond to the examples as given in Chapter Note l(k). He has pleaded therefore inasmuch as the goods are in the form of strips and blocks and do not correspond to any one of the items mentioned in Chapter Note l(k) the same therefore cannot be taken to be excluded by virtue of Chapter Note 1. In regard to the decision of the Tribunal which has been relied upon by the learned lower authorities, he has pleaded, that decision was rendered in the context of plastic sheets falling under Chapter 39 and which had the property of insulation. His plea is that there is no definition of the goods as has been given under Chapter 44 i.e. to the nature of the goods under the description Densified Wood that would be covered under Chapter 44. He has pleaded therefore the ratio of that decision is distinguishable. He has therefore prayed for assessment of the goods under Chapter Heading 4409.
3. The learned Advocate for the respondents has pleaded that the articles of Section XVI under which Chapter Heading 8544 falls and which covers insulating materials of all sorts would be more appropriate as a group insulating materials have been placed for assessment under this heading. She has pleaded by virtue of Chapter Note l(k) under Chapter 44, densified wood in a plate or block form which has electrical insulating properties would stand excluded even though the same is not specifically mentioned under Chapter No.l(k) as one of the excluded items. She has pleaded the examples given should be taken only as illustrative and so long as the item by reason of its property can be taken to fall under Chapter Heading 8546 by virtue of Note l(k) it should be taken to be excluded from the purview of Chapter 44. She has pleaded the ratio of the Tribunal cited squarely applies to the facts of this case. She has also in this connection referred us to the decision of the Hon’ble Bombay High Court in the case of XL Telecom Pvt. Ltd. v. Union of India reported in 1994 (70) E.L.T. 530. She has pleaded that in that case the issue was regarding classification of components for cable jointing kits and the competing Tariff Headings were 85.47 and 39.26. The Hon’ble High Court she has pleaded in that case held that the raw materials for manufacture of components for cable jointing kits could also be considered as insulating materials and therefore classifiable under Tariff Heading 85.47 in preference to the Tariff Heading 39.26. She has also referred us to another decision of the Tribunal rendered in the context of insulating tubes reported in 1992 (59) E.L.T. 97. She has pleaded that insulating tubes were held to be classifiable under Tariff Heading 8546 in preference to 3519 which was for plastic tubes. She has pleaded in that view of the matter the goods should be classified according to the properties imparted to them and since the goods were insulating in nature the same should be classified under Chapter Heading 8546.
4. We have given a careful thought to the pleas made by both the sides. We observe that as per the interpretative rules for the tariff, the goods have to be assessed taking into consideration the description under the various chapter headings read with Section Notes and Chapter Notes. In the present case we find that the scope of the term Densified Wood has been set out under Chapter Note 2 of Chapter 44. There is no dispute that the appellants product answers to the definition of Densified Wood as contained under this Chapter Note and this position has been confirmed during the hearing by the learned Advocate for the respondents on a pointed query having been raised from the Bench. As seen from the Chapter Note 2 the Densified Wood which falls under Chapter 44 is intended for various purposes and could be prepared for also to have resistance to chemical or electrical agencies. The term Electrical Agency as such has not been amplified in the tariff. The electric current and electrostatic electricity can be considered as electrical agency and the resistance to the same can be taken to mean that it provides insulation for the same. Thus the Densified Wood having electrical insulation properties by virtue of Chapter Note 2 falls under this heading. The material manufactured by the respondents answers to the forms as set out under Chapter Heading 4409 blocks, plates, strips etc. A reading of Chapter Heading with Chapter Note 2 therefore clearly shows that the goods in question fall within the ambit of Chapter 44. The plea of the respondents however is that by virtue of Chapter Note l(k) which lists out the items as excluded from the purview of Chapter 44 covers articles of Section XVI and since the insulating materials fall under Chapter 8546 which falls under Section XVI the goods can be taken to be excluded from the purview of Chapter 44. We are not able to agree to this plea of the learned Advocate for the respondents inasmuch as the examples of the goods as are given and which fall under Section Note XVI or Section XVII are in the form of formed articles i.e. it can be in the form of machine parts, cases or covers or which are cabinets for machines or apparatus or which are in the nature of wares as set out therein. The items therefore which can be taken to be excluded have to be answering to the description of the examples which are given under Chapter Note l(k). It is not the case of the respondents that the plates, blocks and sheets can be taken to be corresponding to any one of the examples as are set out under Chapter Note l(k). In our view therefore Chapter Note l(k) does not come to the rescue of the respondents.
5. The learned lower authority has relied upon the decision of the Tribunal reported in 1989 (43) E.L.T. 660. That decision was rendered in the context of the goods which were in the nature of plastic laminates having insulating properties. Chapter 39 does not have any corresponding Chapter Note to Chapter Note (2) of Chapter 44 amplifying the scope of plastic sheets for the purpose of coverage under Chapter 39. Under Chapter Note 2 under Chapter 44, is described not only how the material answering to the description Densified Wood is to be formed but also the properties it would have. The densified wood with certain specified properties is specifically stated to be covered under the description Densified Wood as discussed by us earlier. The ratio of decisions cited on this ground alone can be taken to be distinguishable. We also find that the Tribunal has relied upon Chapter Note 2(n) to Chapter 39 to hold that the laminated sheets in that case would stand excluded from the purview of Chapter 39. This Chapter Note 2(n) for convenience of reference is reproduced below:
“Articles of Section XVI (machines and mechanical or electrical appliances).”
We observe that the items which stand excluded from the scope of Chapter 39 are only such of those which are made of plastic materials but are in the nature of machine and mechanical or electrical appliances. The goods as such do not answer to this description of the excluded items. With respect therefore we observe that the reliance on Note 2(n) could not have been placed in that case for arriving at the conclusion that the goods were not assessable under Chapter Heading 39. We are not adverting to the other reasons for holding the goods as falling under 8546 as set out in the Tribunal’s order. We are referred to this particular aspect as the learned Advocate for the respondents has placed reliance on this portion of the Tribunal’s order. The ratio of the other decisions cited before us likewise is not also applicable as those decisions have been rendered in the context of those particular facts and it has not been shown before us that there was any corresponding Chapter Note under Chapter 39 to Chapter Note 2 under Chapter 44. With respect therefore we observe that the ratio of the decisions is not applicable to the facts of this case. In view of the above discussions we hold that the goods in question would be classifiable under Chapter Heading 4409. We therefore allow the appeal of the Revenue.