Writing and printing paper exemption sustained where newsprint classification was not established under Chapter 48 notes.

Writing and printing paper remained eligible for exemption under Notification No. 48/91-C.E. because the record did not show any change in the assessee's manufacturing process or any failure to satisfy the notification's conditions. The Revenue's contention that the goods had become newsprint was not accepted, as Note 3 to Chapter 48 did not assist on the facts and did not displace the exemption claim. Note 7 to Chapter 48, providing that paper falling under more than one heading is classified under the heading occurring last in numerical order, also supported the assessee's classification. The exemption was therefore available and the classification objection failed.

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Issues: Whether writing and printing paper manufactured by the assessee was entitled to exemption under Notification No. 48/91-C.E. despite the Revenue's contention that the goods had become newsprint, and whether the tariff notes supported classification against the exemption claim.

Analysis: The exemption under Notification No. 48/91-C.E. applied to writing and printing paper satisfying the prescribed conditions. The record did not show any change in the assessee's manufacturing process after the governmental declaration under the Essential Commodities Act and the Newsprint Control Order. The Revenue also did not establish that the assessee had stopped manufacturing writing and printing paper or failed to meet the notification's conditions. Note 3 to Chapter 48, which defines newsprint as paper intended for printing newspapers, did not assist the Revenue in the facts of the case. Note 7 to Chapter 48 also indicated that where paper answers to more than one heading in Chapter 48, classification is to be made under the heading occurring last in numerical order, which supported the assessee's classification claim.

Conclusion: The exemption under Notification No. 48/91-C.E. was available to the assessee, and the Revenue's classification objection failed.

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