1998 (12) TMI 162 - AT - Central Excise

Summary

Issues: Classification of paper under Central Excise Tariff Act, 1985 - Whether paper subjected to super-calendering and glazing should be classified under Chapter sub-heading 4805.90 or 4806.20.

Analysis:
1. The appeal was filed by the Revenue against the order of the Collector (Appeals) regarding the classification of paper manufactured by the appellant. The Collector (Appeals) determined that the paper, subjected to calendering and super calendering, should be classified under sub-heading 4805.90 as it does not undergo coating or impregnation processes, as per the Harmonised Commodity Description and Coding System and Chapter Note 2 to Chapter 48.
2. The facts of the case state that the appellant manufactures various papers under Chapter 48 of the Central Excise Tariff Act, 1985. The Department contended that the characteristics of the paper, such as being translucent, glossy, and resistant to fats and oils, warrant classification under Chapter Heading 48.06 instead of sub-heading 4805.90. The Assistant Collector initially classified the papers under sub-heading 4806.20, leading to the appeal.
3. The Departmental representative argued that the Assistant Collector's detailed order correctly classified the paper under Chapter sub-heading 4806.20, emphasizing that all aspects were considered. However, the Senior Advocate for the appellant highlighted that only super-calendering or glazing processes were applied, without coating or impregnation, aligning with the characteristics of paper under sub-heading 4805.90.
4. After hearing the submissions, the Tribunal found merit in the appellant's argument. It was noted that the adjudicating authority failed to consider crucial factors such as the note in the test report, the retest report indicating characteristics of glazed translucent paper, and the results from the Central Pulp and Paper Research Institute. Due to this oversight, the Tribunal concluded that a remand was necessary to re-examine the evidence and pass appropriate orders in accordance with the law.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved in the classification of paper under the Central Excise Tariff Act, 1985, and the Tribunal's decision to remand the case for further examination based on the evidence presented.