1991 (12) TMI 163 - AT - Customs

Tribunal upholds classification of thermal printing paper under Heading 4811.90, rejecting Heading 4823.90

COSMOS ENTERPRISES Versus COLLECTOR OF CUSTOMS

The Tribunal upheld the classification of imported thermal printing paper under Heading 4811.90, as determined by the Departmental authorities, ruling out ... Classification Issues:Classification of imported thermal printing paper under Heading 4823.90 or Heading 4811.90 of the Customs Tariff.Detailed Analysis:Issue 1: Classification of Thermal Printing PaperThe appeal revolves around the classification of thermal printing paper imported by the appellants under Heading 4823.90 as claimed by them or under Heading 4811.90 as determined by the Departmental authorities. The goods were claimed to be 'printing and writing paper' for clearance under Notification 55/86-Cus., dated 17-2-1986. The adjudicating authority classified the goods under Heading 4811.90 based on the width of the imported paper, ruling out Heading 4823.90 due to width restrictions. The lower appellate authority upheld this classification, considering the imported paper for Fax machine as coated paper under Heading 48.11. The appellants contested this classification, leading to the current appeal.Issue 2: Interpretation of Tariff HeadingsThe Tribunal analyzed the classification of coated paper under various Headings in Chapter 48 of the Customs Tariff. Coated paper can fall under Heading 48.10, covering paper coated with inorganic substances, Heading 48.11 for coated paper other than specific goods, or Heading 4823.59 as a residual category. The Tribunal referred to the Note to Chapter 48 and HSN Explanatory Notes to determine the appropriate entry. It was established that the impugned goods did not meet the criteria for Heading 48.23 due to width restrictions, leading to classification under Heading 4811.90.Issue 3: Legal Precedents and Case LawThe appellants argued that the function of the paper for printing should dictate its classification as printing paper. However, the Tribunal rejected this argument, citing the inapplicability of cited case law. Reference was made to the case of Pudumjee Pulp and Paper Mills Ltd. v. Union of India, which dealt with tracing paper classification under different Tariff Items. The Tribunal distinguished this case from the present scenario, emphasizing the specific entries and classification criteria in the current Tariff. The Tribunal also differentiated another case involving Document Raw Base Paper classification, where the classification itself was not in dispute, unlike the current appeal challenging the classification decision.Conclusion:After thorough analysis and consideration of arguments, the Tribunal upheld the classification under Heading 4811.90 as determined by the Departmental authorities and dismissed the appeal.