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TMI Blog2014 (8) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 and allowed the exemption under Notification 4/2006-CE dated 01/03/2006 as amended. While coming to the conclusion, the learned adjudicating authority has relied upon the test report of the product given by M/s. ARAI wherein it was confirmed that the paper content was 80.12%, plastic content 15.40% and aluminium content 4.48%. 2. In their appeal, Revenue has urged that the learned adjudicating authority has overlooked Note 2(n) to Chapter 48 which specifically provides that the said Chapter does not cover "metal foil backed with paper or paperboard" and the correct classification should be under CETH 7607 2090 as aluminium and articles thereof. It is also urged that a Larger Bench of this Tribunal, in the case of Hindustan Packaging Co. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruded and aluminium foil is coated on the inner side. It adheres to the paper when it comes in between the rollers. Further two layers of hot polyethylene and adhesive polymer is extruded and coated on the inner side and a further thin layer of hot polyethylene is extruded and coated on the outer side of the paper. Thereafter the rolls duly printed and coated, goes through the process of slitting. The slitted rolls are packed and ready for dispatch. 4.1 Thus, the aluminium foil is on the inside of the paper. As per HSN Explanatory Notes: "paper and paperboard for the manufacture of packages for beverages and other foodstuffs, printed with texts and illustrations referring to the goods to be packaged therein, covered on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classification of the aluminium foil covered on one side with a polyester film and on the other side with a polyethylene was the issue for consideration. In the said case, it was held that since plastic predominates in the product as 70-80% of the product consists of plastic and aluminium foil being covered on both sides by different materials cannot be said to be backed so as to merit classification under Chapter 76 and, therefore, the product was held to be falling under articles of plastic under CETH 3920/3923. Similarly, in the case of Commissioner of Central Excise vs. Indus Coating Pvt. Ltd. 2010 (259) ELT 321 2006, a question arose whether plastic laminated aluminium foil would fall under CETH 7606.60 or under CETH 3920 and the hon& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plastics with or without a lining of metal foil (on the fact which will form the inside of packaging) are also classified under CETH 4811. Thus the change in the scope of tariff entry needs to be given effect to. The hon'ble apex Court in the case of Business Forms Ltd. and Wood Craft Products Ltd. (supra) has highlighted the relevance of HSN Explanatory Notes in classification under the Customs and Central Excise Tariff as they are fully aligned to the Harmonized System of Nomenclature for commodity classification. In Sharp Industries Ltd it was held by the hon'ble Apex Court that - " An aluminium foil which is covered on both sides, by different materials, cannot be said to be backed. The aluminum foil is in such cases sandwiched ..... X X X X Extracts X X X X X X X X Extracts X X X X
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