Judgment:
1. By the captioned appeals the appellants have agitated the classification of the product described by them as Cover Paper. The appellants have claimed that their product was correctly classifiable under sub-heading 4820.00 and not under sub-heading 4805.90 as held by the Revenue Authorities.
2. The facts of the case are that the appellants are engaged in the manufacture of cover paper in addition to other products. They filed Classification list effective from 24-11-1988 and claiming the classification of the product 'cover paper' under sub-heading 4820.00.
The A.C. approved the Classification list. The appellants filed another Classification list effective from 1-3-1989 and claimed the classification of cover paper under sub-heading 4820.00 and also claimed exemption under Notification No. 43/86, dated 10-2-1986. A.C.however, approved this Classification list classifying their product under sub-heading 4805.90, disallowing the exemption under Notification No. 43/86 and asking the appellants to pay duty under Notification No.132/86. The appellants went in appeal before the Collector (Appeals).
The Collector (Appeals) in his Order-in-Appeal No. GSM-307/90-B-III disposed of 8 appeals arising out of the Order-in-Original No. V(48) 17-24/CLBC/88, dated 4/6-10-1989. However, we have only 2 appeals before us, therefore, we are confining our judgment in respect of these 2 appeals only. The Collector (Appeals) rejected the appeal filed by the appellants on the ground that Chapter Note 8 to Chapter 48 reads : Heading No. 48.20 does not cover loose sheets or cards, cut to size, whether or not printed, embossed or perforated thereby rejecting the appellants' plea of classification of the product under sub-heading 4820.00 and also disallowing them the benefit of Notification No.43/86.
3. None appeared for the appellants. However, they have made written submission. Shri J.M. Sharma, the ld. DR appeared for the Revenue.
4. In a short compass, briefly two issues arise for determination before us. The first issue is whether the product described as 'Cover paper' is classifiable under sub-heading 4820.00 as claimed by the appellants or it was classifiable under sub-heading 4805.60 as held by the Revenue Authorities. Before examining as to what the product can be, the competing entries are reproduced below:-------------------------------------------------------------------------Heading No. Sub-heading No. Description of goods-------------------------------------------------------------------------48.05 Other uncoated paper and paper board, in rolls or sheets 4805.11 In the manufacture of which sundrying process has been 4805.30 Pulp board, duplex board, triplex board.48.20 4820.00 Registers, account books, note books, order books, receipt We find that for determining whether a product shall be classifiable under sub-heading 4820.00. We go through the Chapter Note. We find that relevant Chapter Heading 48 there is Note 8. Chapter Note 8 to Chapter 48 reads : "Heading No. 48.20 does not cover loose sheets or cards, cut to size, whether or not printed, embossed or perforated." We find that this Note speaks that Heading No. 48.20 does not cover loose sheets or cards, cut to size, whether or not printed, embossed or perforated.
Admittedly, the product manufactured by the appellants was in the form of loose sheets. However, a dispute arose whether it was cut to size or not. From the evidence on record, we find that the appellants were producing this paper of specific size indicated 20" X 40", 60 cm X 75 cm, 18" X 23", 17" X 27". Since the paper before being put in to the market was of specific size, as indicated above, therefore, this naturally follows that it was cut to size. Thus putting the two things together namely that the product was in loose sheets and cut to size we hold that Chapter Note 8 of Chapter 48 excluded this product for classification under sub-heading 4820.00.
5. Now examining the other contentions as held by the Revenue Authorities that the product was classifiable under sub-heading 4805.90 we find that this heading covers other uncoated paper and paperboard, in rolls or sheets. We observe that the paper was admittedly uncoated and was in the form of sheets, therefore, Heading No. 48.05 becomes a specific heading for uncoated paper in sheets. The relevant entry after examining the entries under sub-heading is 4805.90.
6. After careful consideration of the description of the goods and examining the natural meaning of the words describing the goods, we hold that product in dispute in appeal before us is classifiable under sub-heading 4805.90.
7. Now we come to the second issue that is whether the product before us is eligible to the benefit of Notification No. 43/86. Going through the table annexed to the Notification we find that benefit is admissible only if the product was 'Book Cover' classifiable under Chapter Heading 48.20. We also observe that the appellants have claimed that the benefit of Notification No. 43/86 shall be admissible to them because their product was classifiable under Tariff Heading 48.20.
Since we have held that the product is not classifiable under Tariff Heading 48.20 and we have also examined these entries in the Table shown and hold that the benefit of Notification No. 43/86 shall not be admissible to the appellants.
In the result, the impugned order is upheld and the appeals are rejected.