2002 (11) TMI 638 - AT - Customs

Summary

Issues:
Appeal against the legality and correctness of the Order-in-Appeal regarding the refund claim for "white cardboard, 300 GSM" under Notification No. 48/89-C.E.

Detailed Analysis:

1. Refund Claim Rejection by Asstt. Collector:
The Asstt. Collector rejected the refund claim for "white cardboard, 300 GSM" stating uncertainty about the cardboard's coating, purpose, and bagasse pulp content. The claim was denied as the benefit of Notification No. 48/89-C.E. applies to paper, not paperboard.

2. Commissioner (Appeals) Decision:
The Commissioner set aside the Asstt. Collector's order solely based on the manufacturer's certificate indicating less than 75% bagasse content in the item, without additional evidence from the appellants.

3. Revenue's Contentions:
Revenue argued that the benefit of the notification is for paper, not cardboard, as the imported item was declared as white cardboard with a grammage of 300 GSM, not for writing purposes eligible for the benefit.

4. Legal Precedents and Arguments:
The Revenue cited the Vapi Paper Mills Ltd. case, where paper up to 225 GSM is considered paper, beyond which it is board. The Madras High Court's judgment in Harak Chand v. U.O.I. supported this view. Additionally, the New India Industries Ltd. case established that for printing and writing paper, grammage should not exceed 180 GSM.

5. Appellants' Counter-Argument:
The appellants contended that the Commissioner did not consider these legal precedents and requested a remand to reevaluate the issue.

6. Tribunal's Decision:
After reviewing the submissions and evidence, the Tribunal found the grammage to be 300 GSM, classifying the item as white cardboard. Following legal precedents, the Tribunal upheld that grammage beyond 225 GSM is board, not paper. The Commissioner's decision was deemed improper for not considering the Madras High Court's judgment. The appeal was allowed, setting aside the impugned order and confirming the Asstt. Collector's decision, as the goods were cleared, and the test results supported a grammage of 300 GSM.

In conclusion, the Tribunal ruled in favor of Revenue, denying the refund claim for white cardboard under Notification No. 48/89-C.E., based on the classification of the item as board due to its 300 GSM grammage, in line with established legal interpretations.