2005 (9) TMI 483 - AT - Central Excise

Summary

Issues: Classification of "Bituminised Poly Laminated Paper" under the Customs Tariff Act.

Classification Dispute:
The dispute in this case revolves around the classification of a product known as "Bituminised Poly Laminated Paper." The assessee classified it under SH 4811.90 with a duty rate of 20%, while the Revenue sought to reclassify it under SH 4811.30 with a duty rate of 25% ad valorem. The lower appellate authority supported the assessee's classification, leading to the Revenue's appeal.

Representation and Hearing:
Despite notice, there was no representation for the respondents. The Appellate Tribunal heard the learned Senior Departmental Representative (SDR) on behalf of the Appellant.

Nature of the Product:
The product in question is paper coated on one side with bitumen and then laminated with plastic. The appellant argued that the essential characteristic of waterproofing comes from the plastic covering, suggesting classification under SH 4811.30 as "paper covered with plastic." However, the lower appellate authority identified bitumen as the water-proofing material. The Tribunal agreed with this assessment, emphasizing that the product should not be considered simply "paper covered with plastic" as it fails to acknowledge the bitumen layer. Given the process of coating paper with bitumen and then with plastic, the product is more appropriately classified as "bituminised poly laminated paper" under SH 4811.90, as asserted by the assessee.

Decision and Conclusion:
Ultimately, the Tribunal upheld the lower appellate authority's decision, dismissing the Revenue's appeal. The classification of the product as "bituminised poly laminated paper" under SH 4811.90 was deemed appropriate based on the characteristics and composition of the item. The operative part of the order was pronounced in open court on 12-9-2005.