1985 (2) TMI 169 - AT - Central Excise

Summary

Issues: Classification of waxed paper under Central Excise Tariff Item No. 17(2) vs. Item No. 68

In this judgment by the Appellate Tribunal CEGAT, New Delhi, the appeal involved the classification of waxed paper under the Central Excise Tariff. The appellants were alleged to have cleared waxed paper without payment of duty, exceeding the exemption limit. The Collector of Central Excise held that the waxed paper fell under Item No. 17(2) and was liable for duty. The Board of Central Excise and Customs upheld this decision, leading to the appeal before the Tribunal.

The main contention raised by the appellants was that the waxed paper, printed with specific designs for specific manufacturers, should be classified as an article of paper under Item No. 68. They argued that the product had transformed into a wrapper, distinct from ordinary paper, citing a trade notice from the Chandigarh Central Excise Collectorate to support their claim.

The Departmental Representative contended that the waxed paper, upon printing, became a product of the packaging industry and should be classified under Item No. 68. However, during the hearing, it was acknowledged that the printed waxed paper with specific designs would indeed fall under Item No. 68.

The Tribunal carefully considered the manufacturing process outlined by the appellants, which involved printing the paper with specific details before subjecting it to waxing. It was established that the printing of designs was specific to certain products and manufacturers. The Tribunal analyzed that while printing alone may not change the classification of the paper, the subsequent waxing process transformed it into a distinct commodity, namely waxed paper, falling under Item No. 17(2) of the Central Excise Tariff.

Ultimately, the Tribunal rejected the appellants' argument that the printed waxed paper should be classified under Item No. 68, emphasizing that the process of waxing created a new product, distinct from ordinary paper. Therefore, the appeal was dismissed, affirming the classification of the waxed paper under Item No. 17(2) of the Central Excise Tariff.