Classification of ECG recording paper as paper under the tariff, with duty to be recomputed after exemption withdrawal.

Electro cardiograph recording paper was analysed as paper and paperboard under Heading 4823, read with the HSN because the excise tariff follows that structure. The paper was treated as covered by the residual description of cut-to-size or cut-to-shape paper, including rolled ECG paper after cutting and slitting, rather than as a separate category of other articles of paper merely because it is used in ECG machines. Earlier tariff advice classifying it as paper supported that view. After withdrawal of exemption from 1-3-1994, duty was to be recomputed on the corrected classification, with opportunity to contest the computation.

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Issues: Classification of electro cardiograph recording paper under Heading 4823.19 or Heading 4823.90 of the Central Excise Tariff Act, 1985, and the consequential duty recomputation after withdrawal of exemption.

Analysis: The tariff scheme under Heading 48.23 was read with the Harmonised System of Nomenclature, because the excise tariff is patterned on the HSN. Heading 48.23 was treated as a residuary heading for paper and paperboard not covered by earlier headings, and the expression "other paper, paperboard, cellulose wadding and webs of cellulose fibres, cut to size or shape" was understood to include ECG paper in rolled form after cutting and slitting. The goods continued to answer the description of paper and did not move into the separate category of "other articles of paper" merely because they were prepared for use in ECG machines. The earlier tariff advice treating ECG paper as paper also supported this view. The exemption position after 1-3-1994 was separately noted for duty recomputation on the assessed classification.

Conclusion: The goods were correctly classifiable under Heading 4823.19 and not under Heading 4823.90. The matter of duty was to be recomputed in accordance with law on that basis, with limited opportunity to contest the figures and related computation aspects.

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