The process of manufacturing the impugned product involves ...

Surgical glove inner wrap classified as packing paper, not 'wallet' under 4817. Reasonable grounds, no suppression. Demand limited, penalty set aside.

July 29, 2024

Case Laws     Central Excise     AT

The process of manufacturing the impugned product involves printing, cutting, and folding of special paper, resulting in a product known as 'surgical glove inner wrap' or 'surgical glove inner wallet' used for wrapping surgical/examination gloves. The appellant sought classification under heading 4817 as a 'wallet', but the Tribunal held that it is appropriately classified under tariff heading 4823 9013 as packing and wrapping paper for surgical gloves. The appellant's claim of classification under 4817 3090 was correctly rejected. Regarding the extended period of limitation, the Tribunal held that there was no suppression of facts or intention to evade duty, as the appellant could have reasonably thought the product to be a 'wallet'. Hence, the demand was limited to the normal period with interest, and the penalty was set aside. The appeal was partly allowed.

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