TMI Blog2014 (8) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... oduction of a specific entry for asceptic packaging paper, the scope of CEETH 4811 has undergone a change and paper or paperboard backed by a metallic foil merits classification under Chapter 48 which was not the position earlier. The HSN explanatory notes also underwent a change to incorporate within the scope of CETH 4811 such paper. A reading of the revised HSN Explanatory Notes clearly shows that paper and paperboards covered on both faces with thin transparent sheets of plastics with or without a lining of metal foil (on the fact which will form the inside of packaging) are also classified under CETH 4811. Thus the change in the scope of tariff entry needs to be given effect to. - Product manufactured by the appellant is more appropria ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product comprising aluminium foil backed with paper and polyethylene is correctly classifiable under CETH 7606 of CETA and the hon'ble apex Court had upheld the said decision as reported in 1998 (97) ELT A139 (SC). It is therefore, the Revenue's contention that the product merits classification under CETH 7606 and, therefore, the duty demand of ₹ 17.65 crores short-paid by the appellant merits to be upheld along with interest thereon and also the respondent needs to be imposed with penalty for mis-declaration. 3. The learned Commissioner (AR) appearing for the Revenue, reiterates the findings urged in the appeal memorandum. 4. The learned counsel for the respondent-assessee submits that the process of manufacturing of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e packaging) are also classified in this heading (4811). These products may be creased and marked to identify individual containers to be cut from the rolls. From the manufacturing process adopted, read with the HSN Explanatory Notes, it can be seen that the product merits classification as asceptic packaging paper falling under CETH 4811. 4.2 The learned counsel has also submitted classification opinions given by HM Revenue and Custom, UK wherein it has been opined that the product merits classification under CETH 4811. A classification ruling given by the US Customs authorities are also submitted wherein identical product manufactured by the US entity of the appellant is classified under CETH 4811. 4.3 The learned counsel furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dustries Ltd. vs. Commissioner of Central Excise wherein a question of aluminium foil laminated on both sides with plastic came up for consideration and this Tribunal held that the product would merit classification under Chapter 39 and not under Chapter 76. Accordingly, he submits that the impugned order is sustainable in law and needs to be upheld and the appeal of the Revenue dismissed. 5. We have carefully considered the submissions made by both the sides. 5.1 From the manufacturing process given, it can be seen that the aluminium foil is not backed with any material. On the other hand, it is covered on both sides by plastic material and is laminated on one side of the paperboard. Thus, it is the aluminium foil which forms the bac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lear that Tariff Heading 76.07 will not apply to products which assume the character of articles or products of other headings. In this case, since plastic predominates the product assumes the character of plastic and for this reason it could not be classified under Chapter 76. The said ratio of these decisions applies squarely to the facts of the case before us. Therefore, we are of the considered view that the product manufactured by the appellant is more appropriately classifiable under CETH 4811 as asceptic packaging paper. The rulings given by the UK and US authorities classifying identical products under CETH 4811, though not binding on us, also support this view. The reliance placed by the Revenue on the Hindustan Packaging case doe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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