Converted paper classification remains available for coated and laminated paper products despite composite construction and plastic content.

Paper subjected to coating, impregnation or laminating continues to fall within the tariff concept of converted paper where the statutory entry expressly covers such treatment. On that reasoning, VM PET/LDPE coated glassine paper and BOPP/LDPE coated glassine paper were treated as paper products under Tariff Item 17(1), because the composite character and presence of plastic did not by itself move them to the residuary entry. The commentary also notes that the Department failed to show the goods were not known in trade as converted paper. The corresponding exemption under Notification No. 63/82-CE was therefore available, and Tariff Item 68 was rejected.

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Issues: Whether VM PET/LDPE coated glassine paper and BOPP/LDPE coated glassine paper were classifiable as converted paper under Tariff Item 17(1) and entitled to exemption under Notification No. 63/82-CE, or assessable under Tariff Item 68.

Analysis: The products were manufactured by coating and laminating duty-paid glassine paper with plastic films and LDPE, bringing them within the ordinary meaning of paper subjected to treatment such as coating, impregnating and laminating. The entry for Tariff Item 17(1) covered paper and paper board subjected to such treatments, and the fact that the products were composite in nature or that plastic constituted a major component did not by itself take them outside that entry. The Department did not produce evidence that the goods were not known in trade and commerce as converted paper. The reasoning on composite goods in the cited precedent did not govern this dispute because Tariff Item 17(1) was not in issue there. The principle applied from the Supreme Court decision on treated paper was that coated paper of this kind remained paper for tariff purposes.

Conclusion: The products were correctly classifiable under Tariff Item 17(1) as converted types of paper and were eligible for exemption under Notification No. 63/82-CE; classification under Tariff Item 68 was rejected.

Final Conclusion: The departmental challenge failed and the assessee retained classification under the paper tariff with the connected exemption benefit.

Ratio Decidendi: Paper that has been subjected to coating, impregnation or laminating processes contemplated by the tariff entry remains classifiable as converted paper, and its composite character does not by itself attract the residuary entry where the statutory paper entry is wide enough to cover such treatment.

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