Veneer is not a forest produce and a transit pass is not required for its transportation.

In these 4 petitions common question involved is whether transit pass, as required under Rule 2 of the Transit Rules framed under section 40 of the Assam Forest Regulations, 1891 (hereinafter referred to as 'the Regulations') is applicable for transportation of veneer, as such, the petitions are disposed of by this common judgment.

2. According to the petitioners veneer is manufactured from logs/timbers as a finished product. Forest trees felled are cut into pieces - which are called logs/timber. The Forest Deptt. measures the logs, notes the measurement in Log Measurement Book and collects royalty according to the approved rates and release the same by affixing stamps to the contractors for free sale. For manufacturing veneer, those logs are taken to the mill - a power operated rotary and peeling machine. The logs are sectioned in the mill according to the required size of veneers, i.e. from 3' to 8' in length and 4" to 5 in breadth. The bark of the logs are removed. The sectioned logs are fitted in the peeling machine. The two chocks from the opposite side hold the logs tightly and with the help of power logs moves in circular motion and touch the knife fitted into carriage in force, then thin layers of timber comes out. These thin layers are further cut into pieces according to size required which are called veneer. Veneer is used only for the purpose of manufacture of plywood, as such, it is neither timber nor wood. Veneer is a finished product brought out by human labour and machine and is a distinct com­modity having a distinct character.

3. The petitioners transport the veneer by mill challan on payment of excise duties in the prescribed rate under the provisions of Central Excise and Salt Act, 1944 in advance before bringing out the same from the mill. Prior to issuance of the impugned circular dated 12.9.86, the manufacturers of veneer transported the veneer in and form Assam by mill challan only and no Transit Pass (TP) was necessary for transportation of veneer. The Conservator of Forests, Eastern Assam Circle, Jorhat by circular dated 12.9.86 directed all the DFO's under his circle to treat veneer as forest produce and control the movement of veneer under sections 40 (2) of the Regulations with immediate effect. Thereafter the Forest Deptt. of the Got. of Nagaland, Meghalaya and Arunachal Pradesh received information from the Forest Department of Assam that veneer mills were to obtain TP for transportation of veneers through Assam, Nagaland, Meghalaya and Arunachal Pradesh from the concerned Divisional Forest Officers. The petitioners have impugned the order dated 12.9.86. While issuing Rule, interim order was passed directing that for transportation of veneer, petitioners need not be required to obtain Transit Pass (TP).

4. The respondents have filed affidavit-in-opposition. In the affidavit-in-opposition respondents have not denied the statement of the petitioner about the treatment, labour and manipulation in the veneer mill for producing veneer out of logs or timber. But the respondents' contention is that in spite of undergoing the process of change, veneer continues to remain a forest produce, namely, 'timber' and retains the character of timber. As such, as per provision of Rule 2 of the Transit Rules framed under section 40 of the Regulations, for movement of veneer, TP is necessary.

5. I have heard Mr. AK Maheswari, Mr. K. Agarvval and Mrs. M. Hazarika, learned counsel for the petitioners and Mr. SN Bhuyan, learned Advocate General, Assam assisted by Mr. DP Chaliha, learned Govt. Advocate, Mr. AM Mazumdar, learned Advocate General, Arunachal Pradesh assisted by Mr. A. Roy, learned Senior Govt. Advocate, Arunachal Pradesh,'Mr. CT Jamir, learned Govt. Advocate, Nagaland.

6. Learned counsel for the petitioners submit hat undisputedly timber/ logs from which veneer is produced can be brought into veneer mill only after payment of royalty and on the strength of TP issued by the competent authority. Timber or logs so

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