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TMI Blog1992 (10) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... er or not cut to size and whether or not put up in boxes . The Collector (Appeals) in his impugned order has disposed of an appeal filed by the Department against one order dated 23-1-1989 passed by the Assistant Collector of Central Excise and Customs, Nasik in respect of the appellants. This order passed in pursuance of a show cause notice issued to them asking them why the goods manufactured by them claiming the exemption should not be held ineligible for the exemption because to the Department it appeared that the paper manufactured by the appellants is nothing but carbon paper or copying paper for which the concessional rate of duty is not available under the notification. After considering their reply to the show cause notice the Assistant Collector in his order found that the product manufactured by the appellants namely Self copy paper also known as carbonless copy paper is not a carbon paper or other copying paper including duplicator stencils and transfer paper but that it is self copy paper and hence the Assistant Collector held that the product is eligible for the Notification No. 44/86 and approved their classification list as claimed by them. The impugned order, the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be the ground for denying the exemption for which he relied upon the case of Nageswara Pozzolana Works Pvt. Ltd. v. Collector of Central Excise, reported in 1992 (58) E.L.T. 321 (Tri.). The learned Counsel also urged that in the Tariff the goods are specifically covered by the sub-heading 4809.20 for self copy paper. The proviso to the exemption notification does not specifically exclude self copy paper from the exemption and such exemption cannot be denied by relegating the goods to the residuary entry in the Tariff. The Asstt. Collector s order dated 23-1-1989 was referred to by the learned Counsel to say that he had clearly brought out the distinctive characteristic of self copy papers as compared to other copying papers. The learned Counsel also referred to and relied upon the reasoning of the Collector (Appeals) in the two orders in the case of other manufacturers, wherein the Collector had clearly held that self copy paper even going by the specific tariff, the description is not to be indentified with the carbon paper or other copying transfer papers. 3. In Appeal No. E/770/91-C, the appeal is by the Department against the Order dated 11-12-1990 of the Collector of Custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the respondents will be liable to pay only from 4-1-1990 and not from December, 1989 because by the letter dated 4-1-1990 the notice issued earlier was materially changed. He cited the case reported in 1990 (47) E.L.T. 449 in the case of Indian Oxygen Ltd. v. Collector of Central Excise to say that when the basis of the show cause notice is different, the same cannot be confirmed by single proceeding. 5. Shri K.K. Bhatia, the learned Jt. Chief Departmental Representative argued for the Department in both these cases. He submitted that self copy papers fall under Chapter 48 CETA 1985 is not in dispute. The proviso to the notification, the learned Jt. Chief Departmental Representative urged, is not with reference to the specific sub-heading in Chapter 48 but by general description of the product. Serial No. (vi) notification referred to and extracted supra covers the broad category other copying papers. Therefore, the product in question herein being a type of copying paper, they are barred from the exemption. The learned Jt. Chief Departmental Representative also pointed out that the case law cited by Assessees in this case relating to the classification of the goods under the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance not exceeding 25 grams per square metre (other than those specified at (i) above]; (iv) Glassine paper, cigarette tissue and grease proof paper; (v) Paperboard of the following varieties, namely, pulp board, duplex board and triplex board; (vi) Carbon and other copying papers (including duplicator stencils) and transfer papers, whether or not cut to size and whether or not put up in boxes. 2. This notification shall come into force on the 28th day of February, 1986." The classification of the goods under Chapter 48 is not in dispute. The question is whether the self copy paper is covered by the variety of paper described in the exclusion in Serial No. (vi) of the proviso to the notification which says that exemption contained therein shall not apply to paper and paperboards of the following description. The nature of the paper and the uses to which, it is put are available in the records according to which self copy paper is chemically treated paper. Pressure applied by means of an office machine or a stylus on the original sheet produces a reaction between two different ingredients normally reproducing the impression of the original. It is, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under Notification No. 44/86-C.E. The Board also seems to have given a clarification that self copy paper is covered by the item other copying paper in the proviso to the notification. Incidently, it may also be noted that although there are three separate sub-headings for carbon or similar copying papers, self copy paper and other under Heading 48.09, the rate of duty on all these varieties is the same. Therefore, in view of the fact that the exclusion from the exemption as already seen above is by description of the paper and not by tariff sub-heading, and since the product in question herein has copying function only although it is made up differently from other copying papers like carbon papers, and also having regard to the intention of the notification issuing authority as brought out above, it is, accordingly, held that self copying paper will be covered by the exclusion at Serial No. (vi) of the proviso to exemption Notification No. 44/86 and in such a view of the matter, there is no reason to interfere with the order passed by the lower authorities who have rightly held that the exemption is not available to self copy papers. As regards the validity of the letter of 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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