Tariff classification of tracing paper as printing and writing paper upheld; trade usage and functional use supported Item 17(1).

Tracing paper was held to fall within Tariff Item No. 17(1) as "printing and writing paper" rather than Tariff Item No. 17(2) of the First Schedule to the Central Excises and Salt Act, 1944. The classification turned on the use of the paper: although tracing paper is not primarily used for printing, tracing was treated as a form of writing because it involves marking, delineating, sketching, or reproducing matter on paper. Commercial understanding, supported by affidavits, also showed that tracing paper is regarded in trade as paper used for writing, drawing, or reproduction. The Department did not discharge the burden of justifying a different tariff classification, so duty under Item 17(2) was not attracted.

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Issues: Whether tracing paper falls within Tariff Item No. 17(1) as "printing and writing paper" or within Tariff Item No. 17(2) of the First Schedule to the Central Excises and Salt Act, 1944.

Analysis: The entry itself shows that the use of the paper is relevant in deciding whether it falls under Item No. 17(1) or Item No. 17(2). Tracing paper is not primarily used for printing, but tracing is itself a form of writing because it involves marking, delineating, sketching, or reproducing matter on paper. The commercial understanding supported by the affidavits also showed that tracing paper is treated in trade as paper used for writing, drawing, or reproduction. The burden to justify a different tariff classification lay on the Department, and that burden was not discharged.

Conclusion: Tracing paper is classifiable under Tariff Item No. 17(1) and is not liable to duty under Tariff Item No. 17(2); the finding is in favour of the assessee.

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