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TMI Blog2022 (12) TMI 1290X X X X Extracts X X X X X X X X Extracts X X X X ..... LAL MURLIDHAR VERSUS STATE OF ORISSA [ 1981 (4) TMI 254 - SC ORDER ], Hon'ble Supreme Court has observed that , Paper may be presented in plain sheets or in exercise books or in big rolls. It may be thick or thin, light to heavy, bleached or coloured, according to the requirement of purchasers. The form in which the paper is presented or sold is not a conclusive test, but the use to which it is put would furnish a guiding principle. Although, there is no specific entry for the product 'eco-friendly expandable paper wrap (honeycomb paper for wrapping) in Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017, there is an entry most akin to the product and process ( at Sr. No. 157 of Schedule III of Notification No.1/2017 CENTRAL TAX (Rate) Dated 28-6-2017 and attracts 9% CGST and 9% SGST or 18% IGST. In the instant case the assessee have themselves declared their product to be a packing material used for packing of goods as a cushioning material, separators or edge protector to make shipping cartons of goods and as pallets and pallet boxes - Hence the eco-friendly expandable paper wrap (honeycomb paper for wrapping) merits to be classified under heading 48 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % of kraft paper and rest is other adhesive, hence this paper honeycomb wrap classifies under HSN 4808 category. Contrary to this, 4823-chapter heading is more oriented towards 'other paper, paperboard, cellulose wadding and webs of cellulose fibers' etc. and not specific to kraft paper products. 5. The applicant have submitted their interpretation of law as under- (1) In trade parlance, kraft paper is the main raw-material to make honeycomb wrapping paper and this impugned product contains 80-90% of kraft paper and rest other things are consumable items. (2) Reliance is placed on recent pronouncement of the Hon'ble Advance Ruling Authority (GST) of Karnataka in the matters of M/s LSQUARE ECO PRODUCTS PVT. LTD. [2020 (37) GSTL 394 (AAR-GST-Kar.] and the relevant extract is reproduced below for instant reference: Therefore, on verification of the structure and purpose for which kraft paper honeycomb board or paper honeycomb board used are similar to the corrugated paperboard (listed under 4808 10 00), only difference is that this paper honeycomb board consists of honeycomb like structure core material at the center and on either side of this one or m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The application for advance ruling was forwarded to the Jurisdictional GST Officer to offer their comments/views/verification report on the matter. The Assistant Commissioner, CGST Central Excise Division I, Gautam Buddha Nagar vide his letter C.No 20-CGST/R-5/D-l/GBN/RR/VM Techno/23/2022-23/1448 dated 29.08.2022 submitted that impugned eco-friendly expandable paper warp (honeycomb paper for wrapping) is classifiable under Chapter Sub-heading No. 48239013 for the following reasons- (i) Main input for the final product are papers and adhesive. (ii) The quality and category of input (paper and adhesive) depends on the demand and requirement of their buyers. (iii) The taxpayer submitted they firstly prepare the core materials which are mainly attachment of Kraft papers through adhesive to make a honeycomb like structure and the final products then supplied to their buyer, which they were used in their business as a packaging material. (iv) The HSN 4808 is related to corrugated paper, kraft paper creped crinkled paper only but this classification not categorically specify that these would be used for packing or wrapping purpose as specified under HSN 4823. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ton rags, straw, wood, certain grasses, etc. which are messed into a pulp, and pressed; it is used for writing, printing, or drawing on, wrapping things in, for covering the interior or walls, etc. Encyclopaedia Britannica says - Paper, the general name for the substance commonly used for writing upon or for wrapping things in. In Unabridged Edition of the Random House Dictionary of the English Language the word paper has been defined as a substance made from rags, straw, wood or other fibrous material, usually in thin sheets, used to bear writing or printing on or for wrapping things, decorating walls etc. As per Webster's Dictionary- Paper, a thin flexible material made in leaves or sheets from the pulp of rags, straw, wood or other fibrous material and used for writing or printing upon or for wrapping and various other purposes. 11.2 From the above definitions it is clear that in popular parlance the word paper is understood as meaning a substance which is used for bearing writing or printing, or for packing or for drawing on, or for decorating, or covering walls. [State of Uttar Pradesh v. Kores India Limited, 1977 UPTC 46: (1977) 39 STC 8]. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 4808 40 10 - Sack kraft paper, creped or crinkled, whether or not or perforated 4808 40 90 Other kraft paper, creped or crinkled, whether or not embossed or perforated 4808 90 00 Other 15. From the above, it is clear that the Tariff item 4808 covers Paper and Paper Board which is corrugated, creped, crinkled, embossed or perforated in rolls or sheets and there is no mention of any packing paper or wrapping paper in the Tariff item 4808. 16. The description of Chapter subheading of 4823 of the first schedule to the Customs Tariff Act, 1975 is as under- Tariff Item Description of goods 4823 OTHER PAPER, PAPERBOARD, CELLULOSE WADDING AND WEBS OF CELLULOSE. FIBERS, CUT TO SIZE OR SHAPE OTHER ARTICLES OF PAPER PULP, PAPER, PAPERBOARD, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBERS .......... .................. 482390 Other : Braille paper, cellulose in sole board or sheet; p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) ............... 20. As per Rule 3(a) of General Rules for the Interpretation of Import Tariff, the heading which provides the most specific description shall be preferred to headings providing general description. The Tariff item 48239013 contains specific description of Packing and wrapping paper. The product eco-friendly expandable paper wrap (honeycomb paper for wrapping)' is manufactured from the kraft paper and adhesives and the same is used in wrapping/packing as such Rule 3(a) of General Rules for the Interpretation of Import Tariff will apply and the same merits classification under HSN 4823 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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