Trade understanding governs tariff classification of coated art paper; unsupported market inquiry could not justify higher duty.

Coated art paper weighing 165.9 gms per sq. meter was classified as coated art paper, not coated art board, for customs duty purposes. The Tribunal applied trade understanding, contemporaneous assessment practice, and the relevant public notice, holding that coated art paper below 180 gms was to be assessed as paper rather than board. The Department's market inquiry and trade-usage material was not supported by the record, and the appellants had not been confronted with that report before the order-in-original. Consequential reassessment at the lower rate and refund relief were therefore directed.

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Issues: Whether coated art paper of 165.9 gms per sq. meter was classifiable as coated art paper or coated art board for customs duty purposes, and whether the appellants were entitled to reassessment at the lower rate with consequential refund relief.

Analysis: The goods were examined with reference to their substance, trade understanding and the material placed before the Tribunal. The lighter weight of the sample, the later conference-based assessment practice, and the public notice issued by the Madras Custom House supported the view that coated art paper below 180 gms was to be assessed as paper and not as board. The Department's reliance on market inquiries and trade usage was not supported by the record, and there was no material showing that the appellants had been confronted with the market inquiry report before the order-in-original was made.

Conclusion: The goods were held to be coated art paper and not coated art board. The appeal was allowed and consequential relief was directed to be granted to the appellants.

Ratio Decidendi: For tariff classification, the nature of the goods as understood in trade, supported by contemporaneous assessment practice and relevant factual material, prevails over an unsupported market inquiry.

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