1991 (1) TMI 315 - AT - Customs

Summary

Issues:
1. Classification of imported product under Chapter Headings 4810.11 and 4810.12 for exemption from Customs duty under Notification No. 55/86-Cus.
2. Interpretation of the Notification regarding exemption based on grammage.
3. Refund claim under Notification No. 55/86-Cus. for imported goods.

Analysis:
1. The appellant challenged the reasoning of the Collector of Customs (Appeals) regarding the classification of their imported product, "Baryta Coated Raw Base Paper," under Chapter Headings 4810.11 and 4810.12. The appellant argued that the product should be considered as printing and writing paper for the purpose of exemption from Customs duty under Notification No. 55/86-Cus. The Tribunal noted that the classification of the product under these headings was not in question, and the denial of the benefit should be solely based on the stipulated grammage for exemption, which was between 25 g/m2 and 180 g/m2.

2. The Tribunal referred to a previous appeal involving the same importer, where it was held that the denial of benefit under the Notification should be based only on grammage and not other reasons. The Tribunal emphasized that the grounds for denying the benefit must align with the conditions specified in the Notification. The Tribunal also highlighted that the product's end-use, such as manufacturing photographic paper, should not affect its classification for exemption purposes under the Notification.

3. The Tribunal analyzed the relevant Notification No. 55/86-Cus. and its subsequent amendment by Notification No. 291/87-Cus. The original Notification did not specify the grammage requirements for printing and writing paper, but the later amendment included the requirement of having a substance by weight of 25 g/m2 and above but not exceeding 180 g/m2 for exemption. As the appellants' imported goods fell within the permissible grammage range, the Tribunal allowed the refund claim for the bills of entry from March, April, and May 1986, as well as for the bill dated 17-5-1988, which also met the amended grammage criteria. The Tribunal granted the refund for all nine bills of entry, including consequential relief, based on the grammage compliance with the amended Notification.

In conclusion, the Tribunal upheld the appellant's challenge regarding the classification and exemption from Customs duty based on the grammage requirements specified in the relevant Notifications, ultimately allowing the refund claim for the imported goods meeting the prescribed criteria.