Tariff classification of newsprint in reels must follow the tariff text and common parlance, not an exemption notification.

Newsprint cleared in reels was held not to be shown outside tariff heading 4801, because classification must be determined from the tariff description itself and the common parlance understanding of the goods. The Tribunal rejected the attempt to place the goods under heading 4823, noting that no market enquiry or other evidence established a different trade meaning and that an exemption notification could not control or expand the prior tariff classification. Reliance on an earlier Indian Standard was also found not decisive, so the assessee succeeded on classification and the departmental challenge failed.

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Issues: Whether newsprint cleared in reels was classifiable under heading 4801 of the First Schedule to the Central Excise Tariff Act, 1975 or under heading 4823, and whether the subsequent exemption notification altered the pre-existing classification.

Analysis: The description of heading 4801 covered newsprint in rolls or sheets, but the record did not show that newsprint in reels was commonly understood as distinct from newsprint in rolls. The Tribunal held that the meaning of a tariff entry must be determined from the tariff itself and by common parlance, and that an interpretation adopted for an exemption notification cannot control the prior exercise of classifying the goods under the tariff. It was also noted that no market enquiry or other evidence established a different trade understanding, and the reliance on the earlier Indian Standard was not decisive.

Conclusion: Newsprint in reels was not shown to fall outside heading 4801, and the departmental attempt to classify it under heading 4823 failed. The assessee succeeded on classification, and the exemption notification did not justify disturbing the Commissioner's order.

Ratio Decidendi: Classification must be determined first from the tariff description itself, applying the common parlance understanding of the goods, and an exemption notification cannot be used to expand or control the scope of the tariff entry.

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