TMI Blog2020 (8) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... nt ORDER Brief facts of the case are that the appellant were purchasing Kaoline Coated Paper and subjecting the same with coating of aluminium and were claiming classification under Central Excise Tariff Item No.48101390. The authorities below have held that the goods under question were classifiable under Central Excise Tariff Item No.48115900. Hence the present appeal. 2. Learned Counsel for the appellant has made the following submissions:- 2.1 The issue in controversy is as to whether aluminum coated paper/metalized paper cleared by the appellant during the disputed period merits classification under Central Excise Tariff Heading 48101390 or 48115900 (as claimed by the department). 2.2 The proceedings in the present case commenced on the basis of an audit conducted in the month of November 2010 wherein it was observed by the Audit team that the appellant has misclassified their product namely, metalized paper, a kind of coated paper under Chapter Heading 48026920 by availing concessional rate of duty under Notification No.4/2006-CE dated 01.03.2006. The audit observed that the appellant has classified their product- coated paper under Chapter Heading 48026920 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se Notice dated 23.5.2012, was issued to the appellant referring to the test report of CRCL and demanding duty for the period from May 2011 to November 2011. In the said SCN, it was claimed that the appellant s classification of metalized paper as Aseptic Packaging Paper is not correct as the CRCL report clearly states that the product does not have the characteristic of Aseptic Packaging Paper . 2.12 The appellant replied to the second SCN submitting that the classification of the product as proposed by the Revenue is not correct as the appellant s product i.e. paper and paper board is coated with Kaolin (china clay) and inorganic substances and is free from plastic. 2.13 Further 6 SCNs came to be issued to the appellant, all proposing classification of the appellant s product under 4811 5900. Details of the said SCNs are as under: (i) SCN dated 27.12.2012 demanding duty for the period December 2011 to July 2012. (ii) SCN dated 22.08.2013 demanding duty for the period August 2012 to May 2013 (iii) SCN dated 23.06.2014 demanding duty for the period June 2013 to March 2014 (iv) SCN dated 16.04.2015 demanding duty for period April 2014 to February 2015 (v) SCN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption of goods Unit Rate of Duty 4810 Paper and paperboard, coated on one or both sides with kaolin (china clay) or other inorganic substances, with or without a binder, and with no other coating, whether or not surface-coloured, surface-decorated or printed, in rolls or rectangular (including square) sheets, of any size 4810 13 -- In rolls: 4810 13 10 --- Imitation art paper Kg 10% 4810 13 20 --- Art paper Kg 10% 4810 13 30 --- Chrome paper or paperboard Kg 10% 4810 13 90 --- Other Kg 10% 4810 14 --- In sheets with one side not exceeding 435 mm and the ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... --- Insulating paper Kg 10% 4810 39 20 --- Electric insulating press board Kg 10% 4810 39 30 --- Insulation boards (homogenous) Kg 10% 4810 39 90 --- - Other Other paper and paperboard Kg 10% 4810 92 00 -- Multi-ply Kg 10% 4810 99 00 -- Other Kg 10% Tariff Heading claimed by the Revenue Tariff Item Description of goods Unit Rate of Duty 4811 Paper, paperboard, cellulose wadding and webs of cellulose fibres, coated, impregnated, covered, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Building board of paper or pulp, impregnated Kg 10% 4811 90 14 ---- Chromo board Kg 10% 4811 90 15 ---- Raw base paper for sensitizing, coated Kg 10% 4811 90 16 ---- Surface marbled paper Kg 10% 4811 90 17 ---- Leather board and imitation leather board Kg 10% 4811 90 18 ---- Matrix board Kg 10% --- Other 4811 90 91 ---- Grape guard paper Kg 20% 4811 90 92 ---- Asceptic packaging paper Kg 10% 4811 90 93 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this regard, is that reading of the heading in such a manner would make the phrase with plastic meaningless. To bring an item under this heading, the paper and paper board should be coated with plastic, impregnated with plastic or covered with plastic. The presence of plastic is, therefore, essential. 2.20 The submission of the appellant shall be further clear if one reads the next Tariff Heading 48116000 which covers paper and paper board, coated, impregnated or covered with way, paraffin wax, stearine oil or glycerol. The manner in which the adjudicating Authority has read the heading 48115900, it would make no difference between the heading 48115900 and 48116000 as both the heading cover the activity coated, impregnated or covered . Therefore, the revenue s proposed classification of the product has to be straightway rejected. 2.21 The adjudicating Authority in its order has also given the finding that the nature of coating was declared by the party only after the report of the CRCL and the appellant had not declared the fact before the CRCL report was given. This finding is contrary to the facts on record. In the first SCN dated 22.12.2011, it refers to the reply dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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