TMI Blog1997 (7) TMI 264X X X X Extracts X X X X X X X X Extracts X X X X ..... acturers of paper falling for classification under Chapter 48 of the CETA, 1985. They filed Classification List 1/86 with effect from 1-3-1986 upto 31-3-1986 claiming classification under Heading 4808.29 and the benefit of concessional rate of duty at Rs. 275/- per M.T. under Notification 25/84 which grants this concessional rate to all sorts of paper commonly known as kraft paper, subject to the condition that the total quantity of clearances, if any, of all varieties of paper and paper board in the preceding financial year, on behalf of a manufacturer from one or more factories, did not exceed 3000 MTs. The classification list was approved subject to chemical test as to whether the product was covered by the definition of kraft paper as c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and once notification extends the benefit of concessional rate of duty to all types of paper commonly known as kraft paper, we see no reason as to why the benefit of notification should not be extended to the product in question. It is not the case of the department that the product is paper board which also falls for classification to sub-heading 4804.29. Once the classification of the product as kraft paper is undisputed, automatically the benefit of Notification 25/84 should flow. In this view of the matter, we see no reason to interfere with the order of the Collector (Appeals) and accordingly uphold the same and reject the appeal. 6. [Order per : S.K. Bhatnagar, Vice President]. - It is observed in this case that the respondents had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the benefit was that it was not kraft paper at all then it is not clear how it could be said that no dispute regarding classification was involved. 10. At the same time it is true that there is no reference to any dispute regarding the classification in the show cause notice although it refers to Chapter Note 6 of Chapter 48 and the notification in question. 11. The classification list in dispute has not been produced before us by either side. Since it is the department s appeal and the dispute centers regarding the approval of the classification list it was necessary on its part so to do. Secondly, while the show cause notice and the order-in-original do not indicate that the classification list had been approved provisionally, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting to any test and referring to any test report. 15. It was also not proper not to record any finding about alternative heading if the A.C. had reason to believe that the product was not kraft paper. It was also necessary on the part of the A.C. to first finalise the classification and then examine which was the notification, if any relevant for and applicable to such a product. 16. The A.C. has also referred to the classification list filed by the appellants and mentioned that they have themselves stated that the product in question was manufactured out of waste paper and further recorded that it was not necessary to use chemical sulphate or soda process for manufacture of paper from waste paper. Once again, the A.C. has not recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... termining the applicability or otherwise of this notification. 20. The Tribunal has already held that the criteria built in a section note or a chapter note or a heading in the tariff can be referred-to, in certain circumstances, for instance while interpreting a notification where the notification itself refers to them explicitly or by necessary implication or the consideration of harmonious construction requires but where a notification deliberately deviates from the tariff we have to read the notification as it is and apply. In the present case since the notification prescribes common parlance test in contrast to the tariff which provides a statutory definition we have to proceed on the basis of the language used in the notification fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
