2011 (6) TMI 447 - AT - Central Excise

Classification of news print in reel - assessee contending classification under tariff sub heading 4801.00 whereas department contend it to be classifiable under 4823 as other papers - Held that - The description news print under heading 4801 is more specific than the description paper used in chapter 4811 and 4823. No market enquiry has been conducted to ascertain the common parlance meaning of the term news print in reels . Commissioner rightly held that the classification of news print has to be made as per definition provided under the schedule itself and not as per the general clarification/specification provided in Indian Standard - Decided in favor of assessee.

Summary

Issues: Classification of news prints in reel under Central Excise Tariff Act, 1975

Classification under Chapter 48:
The issue in this case revolves around the classification of news prints in reel under the Central Excise Tariff Act, 1975. The department contended that the news prints in reel should be classified under 4823 instead of 4801. The department relied on the fact that only 'news prints in roll and sheets' are covered under heading 4801. The department also highlighted that prior to an amendment exempting news prints in reel from excise duty, they were chargeable to duty as proposed in the show cause notices.

Interpretation of Tariff Subheadings:
The Tribunal carefully considered the submissions and perused the records to analyze the descriptions of tariff subheadings 4801, 4811, and 4823. The department's argument was based on the contention that chapter heading 4801 specifically refers to newsprint in rolls or sheets, excluding news prints in reels. The Tribunal examined the common parlance meaning of the term 'news print in reels' and emphasized that no market inquiry had been conducted to ascertain this meaning. The Tribunal also noted that the reliance on the IS code 4661:1986 for defining rolls and reels was rightly discarded by the Commissioner due to a new definition in the IS 4661:1999.

Application of Precedents and Notifications:
The department sought support from a previous Tribunal decision regarding the distinction between paper in reels and rolls. However, the Tribunal clarified that the interpretation in the context of an exemption notification could not directly determine the scope of tariff heading 4801. The Tribunal emphasized that the classification of news print should align with the definitions provided in the schedule itself rather than general clarifications/specifications in Indian Standards. It was highlighted that the change in the Indian Standard in 1999 further supported this approach.

Decision and Conclusion:
After a thorough analysis, the Tribunal found no valid reason to interfere with the Commissioner's order. The appeal filed by the department against the Commissioner's decision to drop the proceedings was rejected. The Tribunal emphasized the importance of interpreting tariff entries based on common parlance meanings in the absence of specific stipulations in chapter notes or section notes. The judgment was pronounced in open court, affirming the Commissioner's decision on the classification of news prints in reel under the Central Excise Tariff Act, 1975.