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TMI Blog2005 (5) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... s the correct classification of Newsprint cleared by the appellants. The appellants removed the newsprint in Reels at NIL rate of duty as applicable under Chapter Sub-heading 4801.00 of the Central Excise Tariff Act, 1985. Chapter Sub-heading 4801.00 reads as Newsprint in rolls or sheets . According to the Revenue, Newsprint in rolls or sheets only is covered under CSH 4801.00. To put it differently, Newsprint in forms other than rolls or sheets are not covered under this Heading. Revenue held that Newsprint cleared by the appellant in Reel form would be classified under 4823.90 of CET and is chargeable to Central Excise Duty at the rate of 16% ad valorem. Show Cause Notice was issued for the period from August, 2003 to 8-7-2004. The Adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Registrar of Newspapers for India under the provisions of the Press and Registration of Books Act, 1867 (25 of 1867). The newsprint manufactured by the appellants satisfies the above points. (iii) For several decades, classification of newsprint, whether or not wound around cores, was accepted under tariff heading 48.01. The Chandigarh Collectorate, for the first time, in the case of M/s. ABC Paper Mills Ltd., classified the Newsprint under the residuary entry 4823.90. The Newsprint Manufacturers Association represented to the Government against the above decision. Thereafter, the Central Government issued a Notification No. 23/2004-CE, dated 9-7-2004 exempting Newsprint in reel form from Central Excise Duty by including the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01/2005, dt. 3-10-2005 Dropped all proceedings initiated under Show Cause Notice. 3. Cochin M/s. Hindustan Newsprint Ltd. 35/2005, dt. 31-8-2005 -do- (v) In Notification No. 4/2006, Sl. No. 92, the description is newsprint in reels . Against the above description, Chapter Heading 48.01 is mentioned. This sets at rest the controversy. It is not open to the department to contest the classification issue any longer in view of the above amendment. The only reason given for adopting a different classification is grant of an exemption under Notification 23/2004-CE, dated 9-7-2004. It is settled law that an exemption notification cannot be determinative of classification. (vi) The distincti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Doshi Pvt. Ltd. v. CCE - 1991 (56) E.L.T. 263 (T), which is based entirely on the IS standards of 1986, is misplaced. (viii) No proper reasons have been given for adopting the residuary entry 4823.90. It is well settled law that application of residuary entry has to be made with extreme caution and the same would be attracted only when no other provision, expressly or by necessary implication, applies to the goods in question. The following case-laws were relied on :- (a) Western India Plywoods v. CC, Kochi - 2005 (188) E.L.T. 365 (Supreme Court) (b) Indian Metals and Ferro Alloys Ltd. v. CCE - 1991 (51) E.L.T. 165 (Supreme Court) (c) Bharat Forge and Press Industries (P) Ltd. v. CCE - 1990 (45) E.L.T. 525 (Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4801.00 Newsprint, in rolls or sheets Nil 48.23 Other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape; other articles of paper pulp, paper, paperboard, cellulose wadding or webs of cellulose fibres 4823.10 4823.20 4823.40 4823.90 ---- ---- ---- Other 16% The Adjudicating Authority has taken a firm stand that CH 48.01 covers only Newsprint in rolls or sheets and not Newsprint in reels. He has sought to make a fine distinction between Newsprint in rolls and Newsprint in reels with the help of Indian Standard 4661-1986 and also the decision of Shantilal Doshi v. CCE (cited supra) of the Tribunal. In our view, News ..... X X X X Extracts X X X X X X X X Extracts X X X X
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