1989 (12) TMI 196 - AT - Central Excise

Summary

Issues:
Classification of VM PET/LDPE coated glassine paper and BOPP/LDPE coated glassine paper under Tariff Item 17 or Tariff Item 68 for duty exemption.

Detailed Analysis:

1. Facts and Initial Classification:
The Respondents initially classified the products under Tariff Item 17(1) for duty exemption under Notification No. 63/82-CE. However, a show cause notice was issued for reclassification under Tariff Item 68 due to the composite nature of the products.

2. Assistant Collector's Decision:
The Assistant Collector classified the products under Tariff Item 68, denying exemption under Notification No. 182/82-CE as they were not solely made of materials under Tariff Item 15A(1). He granted exemption under Notification No. 118/75-CE for captive consumption, stating the products were not converted types of paper.

3. Collector (Appeals) Decision:
The Collector (Appeals) overturned the Assistant Collector's decision, classifying the goods under Tariff Item 17(1) and granting duty exemption under Notification No. 63/82-CE. The Department appealed this decision.

4. Arguments Presented:
The Appellant cited a previous case to support classification under Tariff Item 68 due to the composite nature of the products. The Respondent argued against the show cause notice's validity and presented circulars supporting classification under Tariff Item 17(1) as converted paper.

5. Tribunal's Analysis:
The Tribunal examined the manufacturing process of the products and noted they were composite. However, it emphasized that being composite does not exclude classification under Tariff Item 17(1). The Tribunal referenced a Supreme Court case to support classifying the products as converted paper under Item 17(1) for duty exemption.

6. Conclusion:
The Tribunal rejected the appeal, affirming the classification of VM PET/LDPE coated glassine paper and BOPP/LDPE coated glassine paper under Tariff Item 17(1) as converted paper eligible for duty exemption under Notification No. 63/82-CE.