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Issues Involved:
1. Classification of Mica Paper under the Export Tariff. 2. Applicability of exemption Notification No. 259/84-Cus. 3. Admission of a new ground by the appellants. Issue-wise Detailed Analysis: 1. Classification of Mica Paper under the Export Tariff: The central issue was whether Mica Paper should be classified as "Fabricated Mica" under Heading No. 8 of the Export Tariff or as "Processed Mica Powder" exempt from export duty under Notification No. 259/84-Cus. The Assistant Collector initially classified Mica Paper as "Fabricated Mica" based on the dictionary meanings of 'fabricated' and 'processed', and the Export Policy. This classification was challenged by the respondents, who argued that Mica Paper, made from mica particles held together by electrostatic forces, should be considered "Processed Mica Powder". The Collector (Appeals) reversed the Assistant Collector's decision, stating that "fabrication" implies making or constructing by putting together different parts, which is incongruous for materials like liquids and powders. The Tribunal, upon reviewing the records and submissions, noted that Mica Paper is a manufactured item involving sophisticated technology, distinct from Fabricated Mica, which is made by cutting natural mica into specific shapes. 2. Applicability of Exemption Notification No. 259/84-Cus: The respondents claimed a refund of export duty, arguing that Mica Paper should be exempt under Notification No. 259/84-Cus, which exempts "Processed Mica Powder". The Tribunal examined the manufacturing process of Mica Paper, which involves converting Mica Scrap into pulp and then into sheets, not powder. The Tribunal concluded that Mica Paper, being a manufactured item, does not qualify as "Processed Mica Powder" and thus is not covered by the exemption. 3. Admission of a New Ground by the Appellants: The appellants introduced a new ground during the appeal, arguing that Mica Paper, as a manufactured item, should attract a 40% duty under Heading No. 8 of the Export Tariff. The Tribunal allowed this new ground, deeming it a purely legal issue related to the classification of goods under the Export Tariff. Citing the Supreme Court's decision in Commissioner of Sales Tax v. Sarjoo Parsad Ram Kumar, the Tribunal held that a purely legal ground could be raised at any stage if supported by sufficient material on record. Conclusion: The Tribunal concluded that Mica Paper, a manufactured item involving sophisticated technology, cannot be classified as "Fabricated Mica" or "Processed Mica Powder". It falls under Heading No. 8 of the Export Tariff and is subject to export duty. The Tribunal set aside the impugned order and allowed the appeals, confirming that Mica Paper is distinct from Processed Mica Powder and is correctly classified under Heading No. 8, attracting the applicable duty.
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