Waste paper classification prevailed where import records and end-use evidence supported exemption despite goods being in roll form.

Import documents and examination records describing the goods as assorted rejected material supported classification as waste paper under sub-heading 4707.90, and the fact that the goods were in roll form did not by itself justify classification as paper rolls under Heading 4810.00 without testing or other supporting examination findings. On that classification, the end-use evidence and utilisation certificate showed import for recycling into pulp and paper, so the conditions for exemption under Notification No. 21/2002 were satisfied. The accepted classification and exemption were therefore upheld on the basis of the surrounding evidence.

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Issues: (i) Whether the imported goods were classifiable as waste paper under sub-heading 4707.90 or as paper rolls under Heading 4810.00 of the Customs Tariff Act, 1975. (ii) Whether the goods were eligible for exemption under Notification No. 21/2002 dated 1-3-2002.

Issue (i): Whether the imported goods were classifiable as waste paper under sub-heading 4707.90 or as paper rolls under Heading 4810.00 of the Customs Tariff Act, 1975.

Analysis: The goods were described in the import documents as waste paper of assorted cup stock, unprinted cup stock, steel mill kraft without oil, milk carton cuttings with foil and similar rejected material. The department relied mainly on the fact that the goods were found in roll form, but no satisfactory reasons, test results, or examination findings were produced to support classification under Heading 4810.00. The import documents, packing lists, and examination notings consistently described the goods as waste paper, and the materials were shown to be used for conversion into pulp for manufacture of paper.

Conclusion: The goods were correctly classifiable under sub-heading 4707.90 and not under Heading 4810.00.

Issue (ii): Whether the goods were eligible for exemption under Notification No. 21/2002 dated 1-3-2002.

Analysis: Once the goods were found to be waste paper classifiable under sub-heading 4707.90, the end-use evidence and utilisation certificate showed that they were imported for recycling and use in the manufacture of pulp and paper. On that basis, the conditions for the claimed exemption stood satisfied.

Conclusion: The goods were eligible for exemption under Notification No. 21/2002 dated 1-3-2002.

Final Conclusion: The Revenue failed to dislodge the classification accepted by the Commissioner (Appeals), and the imported goods were held to be waste paper eligible for the claimed exemption.

Ratio Decidendi: Where the import documents and surrounding evidence establish that the goods are waste paper, a mere reference to their roll form does not justify classification as paper rolls in the absence of supporting testing or examination.

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