1997 (1) TMI 289 - AT - Central Excise

Summary

Issues: Classification of product under Tariff Heading 4823.90 vs. 3920.31

In the present case, the appeal was lodged against the order of the Collector (Appeals), Allahabad, dated 3-12-1991. The appellant manufactured 'Industrial Decorative Laminated Paper and Sheets'. The main contention revolved around the classification of the product under Tariff Heading 4823.90 or 3920.31. The appellant argued that their product was classifiable under Tariff Heading 4823.90, while the department classified it under Heading 3920.31. The Collector (Appeals) allowed the petition of the respondents, classifying the product under 4823.90, based on previous tribunal orders and the interpretation of Chapter Note 1(f) of Chapter 48. The department, however, argued that the product should be classified under Chapter 39 due to the exclusion clause in Chapter Note 1(f).

The Tribunal considered the submissions made by both parties. It noted that the respondents had relied on previous tribunal orders, and since the department failed to show any substantial differences in the product under consideration, the Tribunal's previous orders were to be followed. The Collector (Appeals) had taken into account the product description while applying the tribunal's orders. The department drew attention to the Board's Circular Letter and Chapter Note 1(f), which specified criteria for classification under Chapter 48.

Upon review, the Tribunal found that the product in question had more than 68% paper content by weight and thickness, with less than 40% resin content. This composition did not fall under Chapter Note 1(f) as per the Board's tariff advice. As the product met the criteria established in previous tribunal orders, the Tribunal upheld the Collector (Appeals)' decision to classify the product under Tariff Heading 4823.90. The department's appeal was rejected, and the Collector (Appeals)' orders were upheld. The Cross Objection was also disposed of accordingly.