1992 (7) TMI 192 - AT - Customs

Summary

Issues:
Classification of Anti-Rust VPI Paper (Grade 27W) under sub-heading 4811.40 or 4811.90 of the Central Excise Tariff Act, 1985.

Detailed Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi concerned the classification of Anti-Rust VPI Paper (Grade 27W) under sub-heading 4811.40 or 4811.90 of the Central Excise Tariff Act, 1985. The dispute arose from the classification made by the Assistant Collector of Customs, who classified the goods under sub-heading 4811.90, which was challenged by the appellants who sought classification under sub-heading 4811.40. The Collector of Customs (Appeals) Bombay rejected the appeal, upholding the classification under sub-heading 4811.90. The Assistant Collector held that the coating with an organic chemical on one side and wax on the other side did not fit the description of sub-heading 4811.40. The Collector (Appeals) further stated that since the customs classification was not challenged, the Central Excise classification should align with it.

The appellants argued that their goods should be classified under sub-heading 4811.40 based on Rule 3(a) of the Rules of Interpretation. They contended that the coating of wax on one side made it more specific to sub-heading 4811.40. The Tribunal considered whether sub-heading 4811.40, covering paper coated with wax, would include paper coated on one side with wax and on the other with an organic chemical. The Tribunal noted that a plain reading of sub-heading 4811.40 indicated that paper coated on one side with unspecified material did not fall under this sub-heading. The Tribunal rejected the appellants' argument that Rule 3(a) favored classification under sub-heading 4811.40, as the specific mention of wax in the sub-heading did not override the nature of the coating on both sides.

The Tribunal emphasized that the interpretation of the tariff description should be based on a plain reading without ambiguity. It concluded that since the paper was coated only on one side with wax and on the other with a different material, it did not qualify for sub-heading 4811.40. Therefore, the goods were correctly classified under the residuary sub-heading 4811.90. The Tribunal dismissed the appeal, stating that the Explanatory Notes of the CCCN were unnecessary as the plain reading of the sub-heading was clear and did not support the appellants' argument of dual-material coating.

In summary, the Tribunal upheld the classification of the Anti-Rust VPI Paper (Grade 27W) under sub-heading 4811.90 of the Central Excise Tariff Act, 1985, based on the nature of the coating on the paper, rejecting the appellants' claim for classification under sub-heading 4811.40.