TMI Blog1991 (12) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the period 22-9-1982 to 8-1-1986 the respondents exported 11 consignments of Mica Paper through I.C.D. Bangalore. The goods were charged to export duty of 10% as Fabricated Mica under Heading No. 8 of the Export Tariff read with Notification No. 329-Cus., dated 2-8-1976 as amended by Notification No. 259/84-Cus., dated 12-10-1984. The respondents paid the duty under protest and later claimed refund of Rs. 3,83,724.45 on the grounds that the Mica paper being processed Mica Powder was exempt from export duty in terms of Notification No. 259/84. In support of their claim they pointed out that in Mica paper particles of mica produced through pulverisation of Mica Scrap were held together purely the electrostatic force between them. The Assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the lower authorities, may be admitted since it raises a purely legal issue. Shri Nair stated that the Mica Trading Corporation had confirmed that Mica paper was a manufactured product distinct from processed mica powder. He contended that Mica paper being an item of manufactured mica was chargeable to duty at 40% under Heading No. 8 of the Export Tariff upto 1-3-1987 when it was exempted from export duty through Notification No. 106/87. He pleaded that on these considerations the impugned order may be set aside. 4. On behalf of the respondents the learned advocate Shri J.B. Koshy appeared before us. He referred to enclosure to the letter dated 11-7-1986 from the Mica Trading Corporation of India at pages 27 to 32 of paper book and poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants can be deemed as purely legal in nature since it relates to classification of the disputed goods under the Export Tariff. It is seen that relying upon the decision of the Hon ble Supreme Court in the case of Commissioner of Sales Tax v. Sarjoo Parsad Ram Kumar, reported in 1976 (37) S.T.C. 533 the Tribunal had held in the case of Shri Kanwal Pal Singh and Others v. Collector of Customs, Kanpur [1988 (35) E.L.T. 725] that a purely legal ground can be raised at any stage provided it is backed by sufficient material on record. Accordingly we allow the request of the appellants and permit them to raise the new ground which occurs at serial No. 2 in their memorandum of appeals. 6. In view of the new ground urged by the appellants the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mica paper Nil 8. From the records of the case we find that the Mica Trading Corporation of India Limited, Government of India undertaking concerned with the development of mining, production and export of mica, had addressed a letter dated 11th July, 1986 to the Collector of Customs, Bangalore pointing out that Mica Paper is a manufactured mica item, involving sophisticated technology which was not available in India till the recent past. It was also clarified that Mica Paper cannot be classified as an item of Fabricated Mica which includes items obtained by cutting natural mica into specific shapes and sizes by means of dies and punches. An extract from the note describing the various technologies employed for the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on either in automatic seives or by a process of levitation. The selected mass of flakelets, known as pulp in the bulk form, is mixed in water in definite proportions to obtain a slurry which is fed into custom made paper mills, where pulp is converted into paper. It is 100% mica sheet bonded by Vauderwaal s forces, which is known as mica paper or technically re-constituted mica. Mica paper could be manufactured in different thicknesses and substance values. Each application would require different thicknesses and substance value." 9. From the information given by the Mica Trading Corporation a body intimately connected with the various aspects of Mica trade, it follows that Mica Paper which is a manufactured mica item, produced through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... EXAMPLE, MICANITE AND MICAFOLIUM): Thin sheets of mica may also be obtained, without employing a binding agent, by submitting powdered and pulped mica waste to a thermal, chemical and mechanical process similar to that used for making paper (reconstituted mica). This heading further excludes : (a) Powdered mica and scrap mica (heading 25.26). (b) .............................................. (c) .............................................. (d) .............................................. (e) .............................................." 11. Under these circumstances we are unable to accept the respondents claim that Mica Paper could be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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