2002 (1) TMI 350 - AT - Central Excise

Summary

Issues:
Classification of impregnated filter paper under Chapter Heading 4811.31 or 4811.39; Determination of compression and coating requirements for classification.

Analysis:
1. Classification Issue:
The case revolved around the classification of impregnated filter paper under Chapter Heading 4811.31 or 4811.39. The Commissioner (Appeals) initially held that the product should be known commercially as decorative laminate to fall under 4811.31, which was contested by the Revenue arguing that impregnated filter paper can also be classified under 4811.31. The Consultant for the respondents argued that since their product was a coated single paper and not compressed sheets, it should be classified under 4811.39. However, after examining the manufacturing process and descriptions, the Tribunal found that the impregnated filter paper met the requirements of compression and coating with phenol, thus classifying it under 4811.31.

2. Compression and Coating Requirements:
The dispute further focused on whether the impregnated filter paper involved compression and coating with phenol as required for classification under 4811.31. The Department argued that more than one sheet was compressed together after impregnation, which was supported by evidence. The Consultant for the respondents claimed no compression was done. Upon examination, the Tribunal found that multiple sheets were indeed compressed together, meeting the compression requirement. Additionally, it was established that the sheets were coated with phenol, fulfilling the coating requirement for classification under 4811.31. Consequently, the Tribunal concluded that the impugned order was incorrect, and the impregnated filter paper should be classified under Chapter sub-heading 4811.31, setting aside the previous decision.

In conclusion, the Appellate Tribunal CEGAT, New Delhi, in the cited judgment, resolved the classification issue of impregnated filter paper under Chapter Heading 4811.31 or 4811.39. The Tribunal determined that the product met the necessary requirements of compression and coating with phenol, leading to its classification under 4811.31. The decision overturned the previous ruling and allowed the appeal, emphasizing the importance of meeting specific criteria for accurate classification under the relevant tariff headings.