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Issues Involved:
1. Classification of Paper Cones, Paper Tubes, Paper Cores, Spools, and Paper Bobbins under the Central Excise Tariff. 2. Retrospective application of the Telex advice dated 8-1-1987. Issue-Wise Detailed Analysis: 1. Classification of Paper Cones, Paper Tubes, Paper Cores, Spools, and Paper Bobbins under the Central Excise Tariff: The appellants, manufacturers of Paper Cones, Paper Tubes, Paper Cores, Spools, and Paper Bobbins, initially classified their products under Heading 4818.19 of CET, 1985, claiming full exemption from duty under the New Budget Proposals dated 28-2-1986. This classification was approved by the Assistant Collector. Subsequently, they filed a fresh Classification List No. 4/86-87 dated 22-3-1986, classifying their products under sub-heading 4818.90 with a duty rate of 12% Adv., as directed by the Range Superintendent. This was approved on 9-4-1986. The Collector of Central Excise (Appeals), Bombay, modified the Assistant Collector's order, classifying the products under sub-heading 4818.19 effective from 8-1-1987, and under sub-heading 4818.90 for the period prior to 8-1-1987. The appellants argued that their products should be classified under sub-heading 4818.19 from 1-3-1986, as settled by the Central Board of Excise and Customs' Telex message dated 8-1-1987. The respondent countered, citing a Tribunal decision in M/s Andhra Pradesh Paper Mills Ltd. v. Collector of Central Excise, Guntur, which classified "reel core" under Tariff Item 4818.90, not 4812.12, and the Supreme Court judgment in G. Claridge & Company Ltd. v. Collector of Central Excise, which held that similar products are not containers under sub-heading 4818.19 but articles of pulp under sub-heading 4818.90. The Tribunal considered whether the Collector (Appeals) erred in applying the Telex advice prospectively from 8-1-1987 instead of retrospectively from 1-3-1986. It was determined that the classification of the subject products under sub-heading 4818.19 w.e.f. 8-1-1987 should also be considered. The Tribunal concluded that the subject products fall under heading 4818.90, not 4818.19, even prior to 8-1-1987. The Tribunal held that disputes on classification matters should not shut out new grounds solely because they were not raised before the lower authorities or no cross-appeal or cross-objections were filed by the respondent. 2. Retrospective Application of the Telex Advice Dated 8-1-1987: The appellants contended that the Telex advice dated 8-1-1987 should have retrospective effect from 1-3-1986, the date of filing the Classification List. The respondent argued that such Telex advices are irrelevant for classification purposes and cannot override statutory provisions or operate as estoppel against correct tariff interpretation. The Tribunal agreed, stating that trade notices/advices are meant for administrative guidance and do not bind or regulate classification decisions. Therefore, the Telex advice could not operate retrospectively. Conclusion: The Tribunal held that Paper Cones, Paper Tubes, Paper Cores, Spools, and Paper Bobbins are classifiable under Heading 4818.90 and not under Heading 4818.19, even prior to 8-1-1987. However, since the department did not file any appeal or cross-objection against the part of the impugned order-in-appeal that classified the goods under sub-heading 4818.19 w.e.f. 8-1-1987, the Tribunal allowed the benefit already availed by the appellants until the date of this order and ruled that the classification under Heading 4818.90 would have a prospective effect. The appeal was disposed of accordingly.
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