Excise classification of map-litho paper: distinct from cartridge paper, with reclassification and refund allowed after protest

White map-litho paper was held to be a distinct product from cartridge paper and not interchangeable with it for central excise classification. The assessment under Item 17(2) was found unsustainable because the material on record showed that map-litho paper of 85 gsm and above fell within the appropriate classification under Item 17(3). Since the clearances had been made under protest and the assessee promptly challenged the classification, re-assessment was directed and the excess duty was held refundable.

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Issues: Whether the clearances of white map-litho paper were correctly assessed under Item 17(2) of the Central Excise Tariff and whether the assessee was entitled to reclassification under Item 17(3) with consequential refund of duty.

Analysis: The clearance had been made under protest and the assessee promptly sought reclassification to claim refund of the excess duty paid. The finding that map-litho paper of 85 gsm and above was indistinguishable from cartridge paper was rejected. The material on record showed that map-litho paper is a distinct paper used for printing maps and is not interchangeable with cartridge paper.

Conclusion: The assessment under Item 17(2) was set aside, re-assessment under Item 17(3) was directed, and the assessee was held entitled to refund of the duty wrongly recovered.

Ratio Decidendi: Where the goods are shown to be distinct from the tariff entry applied and the assessee has timely challenged the assessment made under protest, the assessment is liable to be reclassified and the excess duty refunded.

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