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of <h1>Classification of Wax Coated Paper Tape: Manufacturing vs. Consumer Goods</h1> <h3>EAST COAST (I) ENTERPRISES Versus COMMISSIONER OF CUS., CALCUTTA</h3> EAST COAST (I) ENTERPRISES Versus COMMISSIONER OF CUS., CALCUTTA - 2001 (131) E.L.T. 73 (Tri. - Kolkata) Issues:Correct classification of 'wax coated paper tape below 15 cm width in running length' for ITC license.Analysis:1. Facts: The dispute revolves around the correct classification of wax coated paper tape below 15 cm in width in running length for the purpose of an ITC license. The appellant claims classification under EXIM Code No. 482390 09.90, making it freely importable. However, the Revenue classifies it under EXIM Code No. 482390 09.10, requiring a special import license due to being saleable and trading goods.2. Appellant's Argument: The appellant, represented by Shri Ashok Haldar, contends that the impugned goods are used as raw materials for making artificial flowers and plants and do not directly satisfy human needs like food or clothing. The goods, when below 15 cm in width, fall under a different EXIM code and cannot be classified as consumer goods. The appellant argues that the lower authorities erred in considering the goods as consumer goods based on criteria like saleability and trading.3. Revenue's Argument: Shri R.K. Roy, representing the Revenue, supports the reasoning in the impugned order, maintaining the classification of the goods under EXIM Code No. 482390 09.10.4. Judgment: After considering both parties' submissions, the Tribunal, led by Dr. S.N. Busi, agrees with the appellant's argument. The Tribunal finds that the impugned goods, used for manufacturing artificial plants and flowers, do not directly satisfy human needs and hence should not be classified as consumer goods. The Tribunal concludes that the lower authorities misclassified the goods, leading to unwarranted confiscation and penalties. Consequently, the impugned order is set aside, providing consequential relief to the appellants.In conclusion, the Tribunal's decision clarifies the correct classification of the wax coated paper tape below 15 cm in width in running length, emphasizing that goods used for manufacturing purposes and not directly satisfying human needs should not be categorized as consumer goods, impacting their import classification and licensing requirements.
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