Judgment:
1. The appellants herein filed classification list No. 14/88 in this respect of the product 'Offset plate of papers' and classified the same under Heading 4809.90 and claimed the benefit of Notification 44/86 dated 10-2-1986 as amended. The benefit of the Notification was denied by both authorities below on the ground that the item was coated paper excluded from the benefit of the Notification in terms of clause (iii) thereto. Though arguments had been advanced initially before us regarding classification of the item under Heading 48.16, the learned counsel for the appellants subsequently clarifies that he has no objection to classification by the authorities below i.e., Heading 4809.90, in view of the size of paper exceeding 36 cms on one side.
Therefore the issue before us only relates to the availability of the benefit of Notification.
2. We have perused the records and carefully perused the Notification which exempts paper and boards falling under chapter 48 of the Schedule to the CET from so much duty of excise leviable thereon under Section 3 of the Central Excises and Salt Act, 1944 as an excess of the amount calculated at the rate of 10% ad valorem plus 1,600/- per Mertic Tonne.
Certain paper and paper boards have been excluded from the benefit of the Notification. We are here concerned with clause (iii) and (iv) of the exclusion clause (iii) covers "coated paper (including waxed paper) and paper of a substance not exceeding 25 grams per square meter [other than those specified at (1) above]; and clause (iv) covers, glassine paper, cigarette tissue and grease proof paper." 3. The argument of the learned Counsel is that the coated paper referred to in clause (iii) is that type of paper which is covered by Heading 48.10 and 48.19 of CETA, 1985. He submits that if all the types of coated papers were to be considered as coming within the purview of this exclusion clause, there would have been no reason to stipulate carbon paper separately in clause (iv), as, even during the course of manufacture of carbon papers, coating takes place. Even assuming the learned Counsel's submission in this regard is correct, we will have to look at clause (vi). This clause covers carbon and other copying papers (including duplicator stencils) and transfer papers, whether or not cut to size and whether or not put up in boxes. Since there is no dispute that the appellants' product falls under 48.09, this is a type of copying or transfer paper. This being the position, in the absence of exclusion of transfer paper for offset plates from clause (vi) of the proviso to the Notification, we are of the view that all types of transfer papers, including transfer papers for offset plates would be excluded from the benefit of Notification. We therefore, hold that coated paper for offset plates manufactured by the appellants is not entitled to the benefit of Notification 44/86, uphold the impugned order and reject the appeal.