The State Legislature has no competence to make law by including "veneer" in the definition of "timber" as the same is not a "Forest Produce".

ORDER :- I dispose of all the above Civil Rules by a common judgment and order as these involve common questions of law and similar facts.

2. Petitioners in the above Civil Rules carry on business, inter alia, of manufacture and sale of veneer. Plywood factories are the sole customers of the veneer manufactured by the petitioners. Petitioners in the course of their business of sale of commercial veneer are required to transport those from their factories by truck etc, to various places. For transportation of such veneer they are required to cross check gates in Assam, Nagaland, Arunachal Pradesh etc.

3. Veneer is manufactured from logs. Trees felled in the forest are cut into pieces and tops are removed. These pieces of timber are called logs. The Forest Department measures these logs, enters the measurement in the log measurement book, collects the royalty as per the approved rate on those and thereafter releases the same by putting hammer marks to various contractors for free sale. Some times such logs are also disposed of by the Forest Department itself.

4. For manufacturing Veneer, these logs are taken to the factory where the logs are peeled by some machines with the help of power. First the logs are cut into sections according to the required size of veneer. Barks of the logs are removed, naked sectioned logs are fitted in the peeling machines and with the help of power the logs are moved in circular motion and with the help of knife fitted in the machine thin layers of timber come out and these thin layers are, thereafter, cut into different sizes which make veneer. For the purpose of making veneer, mechanical process is required to be applied. For manufacturing veneer joint effort of human labour and machinery are required to be used.

5. According to the petitioners veneer is commercially a distinct product. It can be used for the purpose of manufacturing plywood, block board, etc. Apart from this it is not normally used for any other purpose.

6. The case of the petitioner is that the veneer is neither timber nor wood and it is not found in the natural state like timber or wood. Veneer is a finished product and is the outcome of manufacturing process. As it is an outcome of manufacturing process, for taking out veneer from the factory Central Excise Duty is required to be paid on the spot or in advance before bringing out the same from the factory premises as per the provisions of the Central Excise Act and Rules. The petitioners are required to transport veneer into Assam by only a Mill Challan and without any interference from any quarter. Forest Department also never used to put any obstacle in the movement of veneer. This was also clarified by the Divisional Forest Officer, Sibsagar Division, Jorhat by his Memo No. B13994-95/ 18 dated 23-11-1983 issued to the Range Officer, Mariani Range with reference to the application dated 8-11-1983 of M/s. Friends Plyood, Tinsukia to the effect that since veneer was a finished product no transit pass was necessary for transportation of veneer. All the Divisional Forest Officers under Eastern Assam Circle, Jorhat in response to the letter No. FC-38/ Sib/EAC dated 17-7-1986 of the Chief Conservator of Forests, Eastern Assam Circle Jorhat submitted that veneer was all along treated as finished product and, therefore, transit pass for transportation of the same was not required. But the Chief Conservator of Forests did not agree with this and, therefore, issued Circular No. FG-38/VENEER/EAC dated 12-9-1996 directing all the Divisional Forest Officers under his circle to treat veneer as Forest produce and to control its movement under Section 40(2) of the Assam Forest Regulations VII of 1891 with immediate effect.

7. Contention of the petitioners was that the view taken by the Chief Conservator of Forest was wholly untrue and contrary to the provisions of law. They further state that though obligation to obtain transit passes