Exemption exclusion for impregnated paper applies only when sheets are also compressed together; mere impregnation is not enough.

An exemption exclusion referring to sheets of paper or paper board impregnated, coated or covered with plastics and compressed together applies only when the compression requirement is also met. Mere impregnation of filter paper is insufficient to bring the goods within the excluded category. On the materials recorded, there was evidence of impregnation but no evidence that the goods consisted of two or more sheets compressed together. The benefit of Notification No. 8/96 therefore remained available, and the classification adopted by the Commissioner (Appeals) was upheld.

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Issues: Whether impregnated filter paper was excluded from the exemption under Notification No. 8/96 and the corresponding tariff entry only because it was impregnated, or whether exclusion applied only when sheets of paper or paper board were compressed together in one or more operations.

Analysis: The exclusionary description in the notification and the tariff entry covered products consisting of sheets of paper or paper board impregnated, coated or covered with plastics and compressed together in one or more operations. The materials on record showed impregnation, but there was no evidence that the goods were made of two or more sheets compressed together. Mere impregnation, by itself, did not satisfy the exclusion clause. Since the show cause notices proceeded only on impregnation and not on compression of sheets, the goods did not fall within the excluded category.

Conclusion: The exemption was not denied merely because the filter paper was impregnated. The assessee was entitled to the benefit of the notification and the classification adopted by the Commissioner (Appeals) was upheld.

Ratio Decidendi: An exemption exclusion referring to products of sheets of paper or paper board impregnated and compressed together applies only when the compression requirement is also satisfied; mere impregnation is insufficient to deny the benefit.

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