9911796707
TMI Blog2024 (7) TMI 1353X X X X Extracts X X X X X X X X Extracts X X X X ..... wallet . Boxes, wallets and writing compendiums, of paper or paper board, containing an assortment of paper stationery mentioned under heading 4817 of CETA, 1985 and relied upon by the appellant, are basically in the nature of goods used to store or carry smaller items. The appellant has stated that the Merriam-Webster Dictionary defines wallet as a bag for carrying miscellaneous articles while travelling, a container that resembles a money wallet such as an usually flexible holding case fitted for carrying specific items. Therefore, a wallet is defined to be any article which is used to carry or hold any item. Since there is no definition for the term 'wallet' in the tariff, reliance can be placed on the dictionary meaning of the said word. Therefore, the product in question is clearly a wallet. The nature and purpose of the inner wrap is to provide a sterile cover to the surgical gloves and is designed to facilitate the easy and uncontaminated wearing of the gloves by the users, who are generally in the medical profession. It is not designed to store and carry goods by hand and is open from three sides - The inner wrap is hence used as a packing and wrapping paper for sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd writing compendium of paper or paper board, containing an assortium of paper stationary. Since the paper wrapper arising out of the process of printing, cutting and folding does not contain any assortment of paper stationary , it does not quality to be classified under Chapter 48173090. It was felt that the correct classification of the product appeared to be under Chapter 48239013 of CETA, 1985. After due process of law, the adjudicating authority held that the paper wrapper was classifiable under Chapter 48239013 of CETA and confirmed the demand of Rs.2,79,82,707/- for the period 1.9.2008 to 28.2.2014 along with interest and imposed equal penalty under sec. 11AC of the Central Excise Act, 1944. Hence the present appeal. 3. Shri Hari Radhakrishnan, learned counsel appeared for the appellant and Shri Anoop Singh, Joint Commissioner (AR) appeared for the respondent. 3.1 The learned counsel for the appellant submitted that the appellant had classified the goods under heading 4817 3090. The heading 4817 covers boxes, wallets and writing compendiums, of paper or paper board, containing an assortment of paper stationery. It therefore, clearly covers wallets made out of paper. The sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refully gone through the appeal papers and have also heard the rival parties. Two issues are at dispute, Firstly the classification of the goods and secondly the issue of the notice being time barred. We would at first examine the issue of classification. It would at this stage be relevant to reproduced the Tariff headings 4823 9013 preferred by the department and 4817 3090 of CETA, 1985 as favoured by the appellant; 482390 Braille paper, cellulose in sub board of sheet, packing and wrapping paper; paper for cigarette filter tips paper cone for loud speaker; patterns made of paper for leather footwear, leather garments, patterns made of paper for articles of apparel and clothing accessories products consisting of sheets of paper and paper board impregnated coated or covered with plastics(including thermostat resins or mixtures thereof or chemical formulations, containing melamine phenol, or urea formaldehyde with or without curing agents or catalysts) compressed together in one or more operations, decorative laminates: 48239011 Braille paper 48239013 Cellulose in sole board or sheet 48239013 Packing and wrapping paper 4817 Envelopes, letter cards, plain post cards and correspondenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in a manner that by pulling open its edges as indicated there on, one can access the gloves easily. The user then must grasp the bottom edge of the glove and with the glove resting on the wrapper slip it onto his hands. Thus, the manner of design and purpose of the inner wrap is to help provide a sterile cover and easy use thereby avoiding contamination of the surgical gloves after manufacture to the point of its use. 6. The Hon ble Delhi High Court in its judgment in Amazon Wholesale India Private Limited Vs Customs Authority of Advance Ruling, New Delhi anr. [CUSAA 76/2022 CM APPL. 23914/2022 (Stay), dated: 11/12/2023] has stated as under, with respect to the different tests for classification; 37. In our considered opinion, the tests evolved by courts in connection with the issue of classification such as nomenclature, common parlance, principal function, primary and incidental purpose are all aids and rules of guidance liable to be cumulatively borne in consideration in order to ascertain the true character of a product . While none of those tests are accorded preeminence, it is ultimately for the authorities to ascertain which of those rules would merit adoption and represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to store and carry small personal items and miscellaneous articles, by hand. The inner wrap is hence used as a packing and wrapping paper for surgical gloves and is appropriately classification under tariff heading 4823 9013 of CETA as determined by revenue. This being so the classification of the goods under heading 4817 3090 has correctly been rejected. 10. As regards the issue of time bar the appellant has stated that vide their letter dated 16.09.2007 they had intimated the process of manufacture to the jurisdictional Assistant Commissioner and the Asst Commissioner vide his letter dated 17.09.2007 had accordingly granted permission for sub-contracting to the EOU unit of the appellant company. In the annexure to the permission letter dated 17.09.2007, the detailed process carried out by the appellant company was clearly stated. The above documents would evidence and establish all the facts relating to the activity carried out by the appellant company was in the knowledge of the Department. Therefore, they submitted that the extended period of limitation cannot be invoked in the present case. Revenue on the other hand has stated that the averment of the appellant is not at al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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