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TMI Blog2011 (7) TMI 988X X X X Extracts X X X X X X X X Extracts X X X X ..... r processed to be used in the manufacture of absorbent products whereas in the Explanatory Note to CTH 4818, we find that this heading covers toilet paper and similar paper, cellulose wadding or webs of cellulose fibres, of a kind used for household or sanitary purposes - the goods imported by the respondents are classifiable under CTH 4703 - Appeal is dismissed - C/750/04-Mum - A/302-303/2011-WZB/C-I(CSTB) - Dated:- 5-7-2011 - Mr M.V.Ravindran, Mr. Sahab Singh, JJ. Appearance Shri S.S.Katiyar, SDR for Appellant Shri V.Lakshmikumaran, Advocate for Respondent Per : Sahab Singh When this matter was called out, we find that the assessee has filed a cross-objection numbered as C/CO-648/04-Mum.The ld.counsel submits that they are supporting the impugned order and there is no portion of the impugned order is aggrieved by the assessee and in view of this, the appeal filed by the Revenue is to be dismissed. 2. This is an appeal filed by the department against the captioned Order-in-Appeal passed by the Commissioner of Customs(Appeals), Mumbai. 3. M/s. Procter Gamble Hygiene Health Care Ltd. ( respondent in this case) filed Bills of Entry No. 345875 dated 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding 36 cm or cut to size or shape' applies more specifically in respect of the item under dispute rather than the description of CTH 4703 which reads as - Chemical wood pulp, soda or sulphate, other than dissolving grades'. Therefore, Chapter 48 provides the more specific description of the goods. He further submitted that from the expert opinion received from the DYCC after testing the samples of the imported goods, it is clear that the nature and characteristics of the items declared in the Bill of Entry are not in conformity with the description of the CTH 4703 as claimed by the importer but rather more akin to heading under Chapter 48189090. He relied on the explanatory note to HSN under Chapter Heading 4703 which indicates - pulps are used in the manufacture of absorbent products ( such as fluffing and napkins for babies) as well as for papers and paper boards requiring high tearing resistance and tensile bursting strength'. From this note, it is evident that wood pulp which has already been subjected to processes so as to enhance its absorbing capacity, need not essentially be classifiable under CTH 4703. The relevant explanatory notes to HSN explains that pulp are used in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord before the original authority and the Commissioner(Appeals) that shows that air laid material imported by the respondent is nothing but wood pulp. He especially relied on the following evidences :- (a) Opinion dated 28.5.03 given by IIT, Roorkee; (b) Opinion dated 27.3.03 given by the Department of Fibres and Textile Processing Technology, University of Mumbai. 6. He submitted that the contention of the department that goods in question are classifiable under Heading 4818 is not correct. He submitted that the airlaid material imported by them is used by them as principal raw material in the manufacture of sanitary napkin. A perusal of CTH 4818 and HSN explanatory notes to CTH 4818 clearly shows that CTH 4818 applies only to cover products which are ready to use as such. Air laid material imported by them can not be used as sanitary napkin. It is used as raw material for the manufacture of excisable goods ( sanitary napkins) falling under heading 48.18 of Central Excise Tariff. Therefore, the department's contention classifying the goods under heading 4818 is not legally correct. He drew our attention to Heading 4803 of the HSN Explanatory Notes which described Cellul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liquor. Sulphate pulp is by far the more important. Pulps from these processes are used in the manufacture of absorbent products (such as fluffing and napkins for babies) as well as for papers and paperboards requiring high tearing resistance and tensile and bursting strength." "48.18 - TOILET PAPER AND SIMILAR PAPER, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBRES, OF A KIND USED FOR HOUSEHOLD OR SANITARY PURPOSES, IN ROLLS OF A WIDTH NOT EXCEEDING 36cm, OR CUT TO SIZE OR SHAPE; HANDKERCHIEFS, CLEANSING TISSUES, TOWELS, TABLECLOTHS, SERVIETTES, NAPKINS FOR BABIES, TAMPONS, BED HSEETS AND SIMILAR HOUSEHOLD, SANITARY OR HOSPITAL ARTICLES, ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, OF PAPER PULP, PAPER, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBRES. This heading covers toilet paper and similar paper, cellulose wadding and webs of cellulose fibres, of a kind used for household or sanitary purposes : (1) in strips or rolls of a width not exceeding 36 cm; (2) in rectangular (including square) sheets of which no side exceeds 36 cm in the unfolded state; (3) cut to shape other than rectangular (including square). It also covers household, sanitary or hospital articles, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as finished product in ready to use condition but it can be treated as raw material only for the purpose of further manufacturing of sanitary napkins. In the scheme of classification, Chapter 47 basically covers raw materials whereas Chapter 48 covers the products of Chapter 47. The goods in question being raw material for the products of Chapter 48 will be appropriately classifiable under Chapter 47 only. Therefore, we are of the view that the goods imported by the respondents are classifiable under CTH 4703. 9. Revenue further contents that samples sent to IIT Roorkee were not drawn from consignments under dispute. It is found that Report dated 20.5.2003 from IIT Roorkee find place in Order-in-Original and the adjudicating authority did not raise this objection in the Order-in-Original. Second contention of Revenue is that Report dated 10.9.2003 from IIT Roorkee, which was placed before Commissioner(Appeals) by the respondent, was not before the original authority. We find that the Commissioner(Appeals) has no option but to pass final orders as under law he has no power to remand the matter to original authority. 10. We, therefore, are of the view that the clas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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