Newsprint classification dispute resolved in favour of Chapter 4801.00, preserving exemption under Notification No. 23/98-CE.

Newsprint in reels was treated as classifiable under Chapter sub-heading 4801.00, with the exemption under Notification No. 23/98-CE available, because the same classification had already been accepted in the assessee's own earlier case and that view had been upheld by the Tribunal. The Revenue's attempt to reclassify the goods under Chapter heading 4823.90 was rejected as the settled classification could not be disturbed on the grounds raised. The benefit of the notification therefore continued for the subsequent period, and the Revenue's challenge failed.

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Issues: Whether the impugned goods, being newsprint in reels, were correctly classified under Chapter sub-heading 4801.00 and entitled to the benefit of Notification No. 23/98-CE dated 01.08.1998, or were classifiable under Chapter heading 4823.90 so as to deny the exemption.

Analysis: The Revenue's challenge to the classification was rejected because the same goods had already been classified under Chapter sub-heading 4801.00 in the assessee's own case for an earlier period, and that view had been upheld by the Tribunal. For the subsequent period as well, the adjudicating authority had extended the benefit of the same notification. In these circumstances, the grounds taken by the Revenue to disturb the settled classification and exemption were found unsustainable.

Conclusion: The goods were held to be classifiable under Chapter sub-heading 4801.00 and eligible for the benefit of Notification No. 23/98-CE dated 01.08.1998; the Revenue's appeal failed.

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