2006 (5) TMI 16 - AT - Customs

Summary

Issues: Classification of "Cork Tipping Base Paper" under CTH 4805.29 or Chapter Heading 48.13

The judgment by the Appellate Tribunal CESTAT, Mumbai, revolved around the classification of imported goods described as "Cork Tipping Base Paper" under CTH 4805.29 or Chapter Heading 48.13. The paper underwent a "Motley Process" involving coating with ink to enhance resistance during smoking. The appellant argued for classification under CTH 4805.29, while the authorities below favored classification under Chapter Heading 48.13, pertaining to cigarette paper.

The Tribunal considered the nature of the "Motley Process" involving coating with ink to impart specific qualities to the paper. The ink mixture used in the process was crucial for enhancing the resistance of the tipping base paper during smoking. The HSN Explanatory notes clarified that Chapter Heading 48.13 encompassed cigarette paper, including tipping paper used in wrapping filter mass and assembling filter-tip and cigarettes. The authorities' classification under CTH 4813.90 was deemed correct, supported by a previous case where the "Motley Process" was interpreted as printing white dots on paper for cigarette-related purposes.

In conclusion, the Tribunal upheld the classification under CTH 4813.90, affirming the impugned order and dismissing the appeal. The decision was based on the specific characteristics of the imported "Cork Tipping Base Paper" and its intended use in cigarette manufacturing, aligning with the classification criteria under Chapter Heading 48.13.