1984 (4) TMI 166 - AT - Customs

Summary

Issues:
Classification of goods for countervailing customs duty under Item 17(2) of the Central Excise Tariff based on the nature of the imported consignment described as "Ribbon (Steel Reinforced Corrugated Paper)."

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi revolved around whether countervailing customs duty under Item 17(2) of the Central Excise Tariff was applicable to a consignment imported by the appellants on 30-11-1977, labeled as "Ribbon (Steel Reinforced Corrugated Paper)." The appellants argued that the goods were not paper as commercially understood, as they contained steel wires and silk threads, and were used in manufacturing filter cartridges. The Department's Representative contended that Item 17(2) Central Excise Tariff covered composite papers, emphasizing that the presence of foreign matter like steel wire and silk thread was immaterial. The Department urged the Bench to decide the levy of CV duty on the Ribbon independently of past actions by the Assistant Collector regarding similar imports.

The Tribunal considered a prior order regarding the classification of the same Ribbon under the Indian Customs Tariff, where it was determined to be a composite article rather than paper. The Tribunal found that since the Ribbon did not qualify as paper as understood commercially, it could not fall under Item 17(2) Central Excise Tariff, which specifically pertained to paper and paperboard. The Tribunal rejected the argument that the Ribbon should attract CV duty based on the classification under a different heading in the Customs Tariff Act, noting that the scope of Item 17(2) Central Excise Tariff was narrower and did not automatically apply to articles covered under a different heading. Consequently, the Tribunal upheld the appellants' contention that no CV duty was chargeable on the Ribbon under Item 17(2) Central Excise Tariff, allowing their appeal with consequential relief.