1993 (9) TMI 202 - AT - Central Excise

Summary

Issues:
Classification of paper vs. paper board for exemption under Notification No. 46/83.

Analysis:
The appeal was filed against the order of the Collector of Central Excise (Appeals), Bombay. The appellants, engaged in paper manufacturing, claimed exemption under Notification No. 46/83 for paper exceeding 25 gms. The Revenue argued that the concession was only for paper not exceeding 25 gms as per the notification. The appellants relied on a decision by the Collector of Central Excise, Bombay, but the Revenue contended that the decision was not binding on the Tribunal and did not address the issue properly.

The grounds of appeal highlighted that the approved classification of the paper was changed without reason, affecting the concessional duty rate applicability. The Assistant Collector denied the exemption based on the I.S.I. specification, defining board as paper not below 180 gm/m. The appellants argued that the notification did not specify the eligible substance for the concessional rate. They also referenced a subsequent adjudication order supporting their stance.

The Tribunal noted the complexity of the issue. The notification aimed to provide concessions for specific types of paper, excluding paper boards. The Assistant Collector classified the product as paper board due to rigidity, relying on the I.S.I. standard. However, the Tribunal emphasized that the rigidity aspect was not tested or documented in the case records, making the classification crucial for exemption eligibility.

The appellants presented certificates from buyers confirming the product as kraft paper, not board. The Tribunal found no contrary evidence from the department and upheld the subsequent adjudication order favoring the appellants. Considering the approved classification list and the lack of justification to deny the benefit under Notification No. 46/83, the impugned order was set aside, and the appeal was allowed.