Continuous computer stationery classifiable under Heading 4820 was treated as exempt under the relevant excise notification.

Continuous computer stationery was treated as classifiable under Heading 4820, not Heading 4823.90, because the controlling Board circular stated that such stationery, whether plain or interleaved with carbon and whether printed with lines, name, logo, or form format, falls within Heading 4820. On that basis, the article notes that goods of this description are covered by Notification No. 43/86-C.E. and are exempt, while the contrary classification under Heading 4823.90 attracts duty under Notification No. 135/89-C.E. The trade notice and departmental order cited in the record were also read as consistent with this position.

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Issues: Whether continuous computer stationery was correctly classifiable under Heading 4823.90 and liable to duty at 12% under Notification No. 135/89-C.E. dated 12-05-1989, or whether it fell under Heading 4820 and was exempt under Notification No. 43/86-C.E. dated 10-02-1986.

Analysis: The controlling Board circular clarified that continuous computer stationery, whether plain or interleaved with carbon and whether printed with lines, name, logo, or form format, is classifiable under Heading 4820 and is exempt under Notification No. 43/86-C.E. The later trade notice of the Collectorate and the departmental order referred to in the record were treated as confirming the same position. On that basis, the classification adopted in the impugned order under Heading 4823.90 was found to be incorrect.

Conclusion: The goods were held classifiable under Heading 4820 and not under Heading 4823.90, with the result that the assessee was entitled to the claimed exemption.

Final Conclusion: The assessment order could not stand and the appeal succeeded.

Ratio Decidendi: Continuous computer stationery of the kind described in the circular is classifiable under Heading 4820 and, where covered by the relevant exemption notification, cannot be assessed under Heading 4823.90.

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