1980 (7) TMI 109 - CGOVT - Central Excise

Summary

Issues:
1. Classification of offset printing paper under Central Excise duty.
2. Interpretation of classification under Item 17 of the First Schedule of the Central Excises and Salt Act, 1944.
3. Consideration of various definitions and industry standards in determining classification.
4. Admissibility of affidavits and relevance in classification decision-making.

Detailed Analysis:

1. The judgment revolves around the classification of offset printing paper for Central Excise duty purposes. The petitioners manufactured paper in their factory, which was subject to duty under Section 3 read with Item 17 of the First Schedule of the Act. The dispute arose when the classification of the paper was changed from 'printing and writing' paper to 'cartridge paper' based on the Deputy Superintendent's notice, leading to a demand for differential duty.

2. The Collector of Central Excise initially classified the offset printing paper as 'printing and writing' paper under Item 17(3) of the Act. However, subsequent reclassification by the Deputy Superintendent under Item 17(1) based on grammage exceeding 85 grams per sq. mt. led to a series of appeals and revisions challenging the classification.

3. The judgment extensively considers various definitions and industry standards to determine the classification of the paper. Definitions from sources like the Chemical Dictionary, ISI glossary, and Paper Trade Manual establish that offset printing paper is commonly known as cartridge paper in the paper trade industry, emphasizing its characteristics and suitability for offset printing processes.

4. The admissibility and relevance of affidavits submitted by the petitioners are also analyzed. The government observed that the affidavits did not address whether the paper in question was known as cartridge paper in the trade industry. The judgment highlights the importance of considering industry standards and reports, such as the Tariff Commission's findings, in classification decisions rather than solely relying on generic statements about the paper's use.

5. Ultimately, the government rejected the revision application, affirming that the offset printing paper, with grammage exceeding 85 grams per sq. mt., containing bamboo and grass stalks, and used for offset printing, was correctly classified as 'cartridge paper' under the relevant tariff items of the Central Excises and Salt Act, 1944. The judgment clarifies the classification change over time and upholds the classification decision based on industry standards and reports.

By thoroughly analyzing the classification dispute, the judgment provides a detailed insight into the considerations and standards applied in determining the classification of goods for Central Excise duty purposes, emphasizing the significance of industry definitions and reports in such decisions.