1992 (4) TMI 121 - AT - Customs

Summary

Issues:
Claim for concessional rate of duty under Notification No. 218/80-Cus.
Whether Indicator Paper manufactured from imported goods qualifies as Impregnated Filter Paper for benefit under Notification.
Interpretation of Notification No. 218/80-Cus. regarding exemption for Base Filter Paper.
Distinction between Impregnated Filter Paper and pH Indicator Paper.
Applicability of Notification No. 218/80-Cus. to imported Base Filter Paper.

Analysis:
The appellants imported Whatman Filter Paper and claimed refund based on Notification No. 218/80-Cus., but the claim was rejected by the Assistant Collector and the Collector of Customs (Appeals). The issue revolved around whether Indicator Paper made from the imported goods could be classified as Impregnated Filter Paper for the notification's benefit.

The appellants argued that the Indicator Paper manufactured from the imported Base Filter Papers should be considered as Impregnated Filter Paper, citing expert opinions, test reports, and industry standards. However, the JDR contended that expert opinions indicated otherwise.

The Notification exempted Base Filter Paper required for manufacturing Impregnated Filter Paper. Various authorities defined Filter Paper as suitable for selective particle retention and low fluid flow resistance. The Chemical Examiner confirmed the imported paper as Base Paper for Indicator Paper, not impregnated filter paper.

The judgment emphasized the distinction between Impregnated Filter Paper and pH Indicator Paper. It noted that the Notification specifically referred to Impregnated Filter Paper, not pH Indicator Paper. The authorities' findings that Impregnated Filter Paper is for filtration media while Indicator Paper is for testing purposes were upheld.

The judgment concluded that the appellants' argument equating pH Indicator Paper with Impregnated Filter Paper was unfounded, as the Notification clearly referred to the latter. The appeal was dismissed for lacking merit, affirming that the imported Base Filter Paper did not qualify for the notification's exemption.

In summary, the judgment clarified the interpretation of the Notification, emphasizing the distinction between different types of filter papers and upholding the authorities' decision to reject the appellants' claim based on the specific language and intent of the Notification No. 218/80-Cus.