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TMI Blog1985 (10) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the notice of demand, Annexure 'H'. The two writ petitions relate to the demand made to pay difference of excise duty for the period 16-10-1978 to 18-4-1979 and the demand made for the further period 16-4-1979 to 22-2-1980 as per Annexure 'H'. 2. A show cause notice was issued to the petitioner Company on 16-4-1979 proposing to demand difference of duty on the carbon paper cleared during 16-10-1978 to 15-4-1979. This item had been subjected to duty under item 68 as per the classification list approved by the proper Officer. What was proposed to be done under the show cause notice was to demand difference of duty payable under item 17(2) of the Central Excise Tariff which was amended with effect from 27-5-1976. 3. The petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced by conversion of duty paid base paper, should be treated as paper falling under tariff item 17(4) of Central Excise Tariff or as an item of sationery, outside the scope of Item 17 of Central Excise Tariff. 2. The matter was considered in the Central Excise Tariff Conference held at Cochin on the 13th to 15th November, 1975. It was reported that carbon paper/stencil paper is sold in the market mostly cut to size by retail stationers. The Indian Customs Tariff Guide has also treated Carbon paper as an item of stationery and not as paper. The Conference was therefore, of the view that carbon paper/stencil paper, were commercially recognised only as articles of stationery. 3. The Board is accordingly advised that carbon paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition, the duty payable thereafter for 16-4-1978 to 22-2-1980 was also demanded. Before the appellate Collector, only the original order of the Assistant Collector was challenged and the demand for the subsequent period is challenged in these writ petitions. 7. The Appellate Collector of Central Excise, Madras, by his order dated 27-12-1980 dismissed the appeal agreeing with the order of the Assistant Collector and held that the carbon paper was rightly brought to tax under tariff item 17(2) as coated paper. Being aggrieved by this order of the Appellate Collector and the demand made as per Annexure 'H' for the subsequent period, these writ petitions are filed challenging them. 8. It is urged by Sri Naganand, the learned Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice that carbon paper will be liable for classification under 17(2). Item No. Description of goods Rate of duty 17. Paper and paper boards, all sorts (including pasteboard, millboard, strawboard, cardboard and corrugated board), in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power- (1) (2) Uncoated and coated printing and writing (Other than poster paper). Paper board and all other kinds of paper (including paper or paper boards, which have been subjected to various treatments, such as coating, impregnating, corrugation, creping and design printing), not elsewhere specified. paper Twenty-five per cent ad valorem 1 (Forty per cent ad valorem) 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of high value-added categories are proposed to be subject to basic excise duty at 32½% ad valorem. Similarly, specified articles made of paper and paper board are proposed, to be brought within the purview of the tariff item but effectively restricting the levy to printed cartons and printed boxes." In the memorandum explaining the bill at paragraph 5 :17 it is stated thus : "Paper and paper boards and articles of paper and paper board: The tariff description is being revised to include specifically articles of paper and paper board." Therefore, developing his argument on the basis of the legislative intendment as reflected in the Memoranda to the Finance Minister's speech, Sri Naganda's further submission is that carbon pape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27-5-1976 and sub-clause (2) was amended which among other things, included coated paper. Subsequent to the amendment to Item 17 by adding coated paper, it is to be noticed that there was no further clarification or trade notice issued by the Collector or by the Central Government bringing carbon paper specifically within the description of 'coated paper' as per the amended item 17(2). 15. It is only on 22-11-1979 that the Collector of Central Excise, Bangalore issued the trade notice clarifying the position regarding classification of carbon paper under Item 17. This classification as per the trade notice is challenged by the learned Counsel for the petitioner that such a classification should not be given effect to since the depart ..... X X X X Extracts X X X X X X X X Extracts X X X X
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