1997 (1) TMI 314 - AT - Customs

Issues Involved
1. Whether the imported item qualifies as electrical crepe kraft paper entitled to the benefit of Notification No. 37-Customs, dated 1-3-1978.
2. Validity and applicability of the test conducted by the National Test House (NTH), Alipore, Calcutta.
3. Relevance and applicability of British Standards BS 698:1956 and BS 5068:1974 to the imported crepe kraft paper.
4. Whether the appellants were given a fair opportunity to retest the imported material.

Detailed Analysis

1. Whether the imported item qualifies as electrical crepe kraft paper entitled to the benefit of Notification No. 37-Customs, dated 1-3-1978
The primary issue is whether the imported creped kraft paper qualifies as electrical crepe kraft paper under Notification No. 37-Customs, dated 1-3-1978. The appellants argued that the imported paper is used for insulation purposes, made by creping two layers of thin kraft paper, and is known commercially as electrical grade insulation paper. They contended that the paper is unsuitable for any other purpose. However, the Customs Department, based on the test report from the National Test House (NTH), Alipore, concluded that the imported sample did not meet the electrical grade standards as per BS 698:1956.

2. Validity and applicability of the test conducted by the National Test House (NTH), Alipore, Calcutta
The appellants challenged the validity of the NTH test, arguing that BS 698:1956 is applicable only to plain base kraft paper and not to creped kraft paper. They asserted that the correct standard for creped kraft paper is BS 5068:1974, which does not prescribe an electrical breakdown voltage (BDV) test for crepe kraft insulating papers. The NTH test results showed a BDV much lower than the required standards for Class IA and Class IB kraft insulating papers, leading to the conclusion that the imported paper was not of electrical grade. The Tribunal observed that the NTH is a reputed institution, and there was no reason to disbelieve its test report. The appellants did not produce any contradictory test report to challenge the NTH findings.

3. Relevance and applicability of British Standards BS 698:1956 and BS 5068:1974 to the imported crepe kraft paper
The appellants argued that BS 698:1956 pertains to kraft insulating paper and not to creped kraft paper, for which BS 5068:1974 is the relevant standard. They contended that the NTH test was invalid as it did not apply the correct standard. The Tribunal noted that the BS 5068:1974 standard does reference BS 698:1956 for certain requirements, indicating that the base paper used in creped kraft paper must comply with BS 698. The Tribunal found that the NTH test report, which referenced BS 698, was still valid and applicable.

4. Whether the appellants were given a fair opportunity to retest the imported material
The appellants argued that they were not given an opportunity to independently retest the imported material, as the NTH test results were communicated to them only in 1985, by which time the consignment had been fully utilized. The Tribunal observed that the second sample for testing was obtained from the appellants themselves, and they did not protest at the time. The delay in testing and communication of results was noted, but the Tribunal held that the appellants had not demonstrated any procedural unfairness or provided any contradictory evidence to challenge the NTH test report.

Conclusion
The Tribunal concluded that the appellants failed to prove that the NTH test report was invalid or that the imported creped kraft paper met the standards for electrical grade insulation paper. The appeal was rejected, and the order of the lower authorities was upheld. The Tribunal emphasized the reliability and expertise of the NTH and the absence of any contradictory evidence from the appellants.

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