Waste paper classification upheld where compressed paper cuttings remained eligible for duty concession despite possible ancillary use.

Imported compressed bales of cuttings, odd lengths and similar paper waste were treated as waste paper under Heading 47.02, because the qualifying words "fit only for use in paper making" applied to scrap articles of paper or paper board, not to waste paper. The explanatory notes were used as a reliable guide and supported the view that waste paper may include assorted cuttings, rejects and old newspapers even if some ancillary use is possible. On that basis, the goods qualified for the duty concession under the notification, and release was directed on execution of the prescribed bond.

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Issues: Whether the imported goods were waste paper classifiable under Heading No. 47.02 and entitled to duty concession under Notification No. 234/79-Cus. dated 5-12-1979.

Analysis: The heading covered waste paper and paper board, while the qualifying words "fit only for use in paper making" applied to scrap articles of paper or paper board and not to waste paper. The explanatory notes to the heading were treated as a reliable guide, and they showed that waste paper includes assorted cuttings, rejects, old newspapers and similar material, even if it may have some other possible use. The goods were found to be compressed bales containing cut sizes and odd lengths, with only a small portion objected to by customs, and the surrounding circumstances supported the conclusion that they were imported as waste paper rather than as paper fit for printing or writing.

Conclusion: The goods were held to be waste paper eligible for the duty concession under the notification, and release was directed subject to execution of the prescribed bond.

Final Conclusion: The classification dispute was decided in favour of the importer, and the duty exemption under the notification was upheld while the valuation dispute was left undecided.

Ratio Decidendi: Goods imported as compressed bales of cuttings and similar paper waste retain their character as waste paper for tariff exemption, and possible ancillary use does not exclude classification as waste paper.

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