2005 (8) TMI 439 - AT - Central Excise

Issues:
1. Classification of Printed Paper Sheet under different headings.
2. Time-barred demand for printed sheet.
3. Alleged suppression of facts in clearance of wrapper.
4. Application of Notification No. 49/87 for duty exemption.
5. Appeal by Revenue rejected.

Classification of Printed Paper Sheet:
The appeal before the Appellate Tribunal concerned the classification of Printed Paper Sheet for the period 1-4-1991 to 31-03-1994 under heading 4811.90 instead of heading 4820.00. The adjudicating authority had dropped the demand on grounds of limitation, noting that all classification lists filed by the respondents were duly approved by the proper officer under heading 4820.00. The Tribunal upheld this decision, citing previous judgments that supported the view that the extended period of limitation cannot be invoked when the classification lists have been approved and no new facts have emerged. The Tribunal found that the demand for the printed sheet was time-barred, as the show cause notice was issued beyond the statutory period.

Time-barred Demand for Printed Sheet:
The Tribunal examined the grounds of appeal raised by the Revenue but found no justifiable reason to interfere with the adjudicating authority's findings. The Revenue's contention that the appellant should have disclosed detailed manufacturing processes was dismissed, as the proper authority should have requested further details before approving the classification list. Therefore, the Tribunal upheld the decision regarding the time-barred demand for the printed sheet.

Alleged Suppression of Facts in Clearance of Wrapper:
Regarding the demand raised on printed paper sheets cut to size with customer designs, the adjudicating authority observed that they were cleared as wrappers despite being declared as printed label sheets. However, the authority extended the benefit of Notification No. 49/87, which exempts converted paper made from duty-paid paper. The Revenue argued that the conditions of the notification regarding the duty-paid base paper were not adequately considered. The Tribunal, however, noted that the authority was satisfied about the duty-paid character of the base paper, as per the explanation in the notification deeming base paper as duty-paid unless proven otherwise. Since no evidence was presented to show otherwise, the Tribunal upheld the decision to drop the demand for wrappers.

Application of Notification No. 49/87 for Duty Exemption:
The Tribunal carefully analyzed the application of Notification No. 49/87 for duty exemption concerning the converted paper made from duty-paid paper. By considering the deeming provision in the notification and the lack of evidence to the contrary, the Tribunal found no fault in the adjudicating authority's decision to grant the benefit of the notification.

Conclusion:
In conclusion, the Appellate Tribunal rejected the appeal filed by the Revenue, thereby upholding the decisions of the adjudicating authority on the classification of the printed paper sheet, the time-barred demand issue, and the application of duty exemption under Notification No. 49/87. The Tribunal found no infirmity in the authority's reasoning and upheld the decisions in favor of the respondents.

(Operative part pronounced in Court)

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