9911796707
TMI Blog2024 (7) TMI 1353X X X X Extracts X X X X X X X X Extracts X X X X ..... se audit party, it was observed that the paper cover manufactured for packing of the gloves, was classified by the appellant under Chapter 48173090 of the CETA, 1985 attracting nil rate of duty. This classification appeared to be wrong since the description under Chapter 481730 covers only 'boxes pouches, wallets and writing compendium of paper or paper board, containing an assortium of paper stationary.' Since the paper wrapper arising out of the process of printing, cutting and folding does not contain any "assortment of paper stationary", it does not quality to be classified under Chapter 48173090. It was felt that the correct classification of the product appeared to be under Chapter 48239013 of CETA, 1985. After due process of law, the adjudicating authority held that the 'paper wrapper' was classifiable under Chapter 48239013 of CETA and confirmed the demand of Rs.2,79,82,707/- for the period 1.9.2008 to 28.2.2014 along with interest and imposed equal penalty under sec. 11AC of the Central Excise Act, 1944. Hence the present appeal. 3. Shri Hari Radhakrishnan, learned counsel appeared for the appellant and Shri Anoop Singh, Joint Commissioner (AR) appeared for the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the the heading CETH 4823 makes it more clear by referring to paper cut to size. He also placed reliance on the Tribunal judgment in the case of M/s MAA Printers [TMI 776 2017 (8)], M/s Shubham Prints [TMI 491 2018 (9)] and M.s Smash Colour Prints [2015 (7) TMI 583]. He prayed that the appeal may be dismissed. 4. We have carefully gone through the appeal papers and have also heard the rival parties. Two issues are at dispute, Firstly the classification of the goods and secondly the issue of the notice being time barred. We would at first examine the issue of classification. It would at this stage be relevant to reproduced the Tariff headings 4823 9013 preferred by the department and 4817 3090 of CETA, 1985 as favoured by the appellant; 482390 Braille paper, cellulose in sub board of sheet, packing and wrapping paper; paper for cigarette filter tips paper cone for loud speaker; patterns made of paper for leather footwear, leather garments, patterns made of paper for articles of apparel and clothing accessories products consisting of sheets of paper and paper board impregnated coated or covered with plastics(including thermostat resins or mixtures thereof or chemical formulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct with each other. These are further put into a box with other such inner wrapped gloves in sets for the purpose of sale. The inner wrap enclosing the gloves maintains its dimensional stability within the box. A sterile glove pair can be taken out of the box and placed on a clean surface, while still in the inner wrap. The wrap with three sides open, is designed in a manner that by pulling open its edges as indicated there on, one can access the gloves easily. The user then must grasp the bottom edge of the glove and with the glove resting on the wrapper slip it onto his hands. Thus, the manner of design and purpose of the inner wrap is to help provide a sterile cover and easy use thereby avoiding contamination of the surgical gloves after manufacture to the point of its use. 6. The Hon'ble Delhi High Court in its judgment in Amazon Wholesale India Private Limited Vs Customs Authority of Advance Ruling, New Delhi & anr. [CUSAA 76/2022 & CM APPL. 23914/2022 (Stay), dated: 11/12/2023] has stated as under, with respect to the different tests for classification; "37. In our considered opinion, the tests evolved by courts in connection with the issue of classification such as nomenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the inner wrap is to provide a sterile cover to the surgical gloves and is designed to facilitate the easy and uncontaminated wearing of the gloves by the users, who are generally in the medical profession. It is not designed to store and carry goods by hand and is open from three sides. This is different from a wallet, which is a product that can be securely closed and is used to store and carry small personal items and miscellaneous articles, by hand. The inner wrap is hence used as a packing and wrapping paper for surgical gloves and is appropriately classification under tariff heading 4823 9013 of CETA as determined by revenue. This being so the classification of the goods under heading 4817 3090 has correctly been rejected. 10. As regards the issue of time bar the appellant has stated that vide their letter dated 16.09.2007 they had intimated the process of manufacture to the jurisdictional Assistant Commissioner and the Asst Commissioner vide his letter dated 17.09.2007 had accordingly granted permission for sub-contracting to the EOU unit of the appellant company. In the annexure to the permission letter dated 17.09.2007, the detailed process carried out by the appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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