TaxTMI 
TaxTMI 
1985 (10) TMI 176
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....This item had been subjected to duty under item 68 as per the classification list approved by the proper Officer. What was proposed to be done under the show cause notice was to demand difference of duty payable under item 17(2) of the Central Excise Tariff which was amended with effect from 27-5-1976. 3.  The petitioner replied to the show cause notice contending that the carbon paper manufactured by the petitioner Company was being rightly subjected to duty under Item 68 and that was in conformity with the Collector's trade notice 56/76 dated 2-3-1976. The trade notice is reproduced below : "CENTRAL EXCISE TRADE .NOTICE NO. 56/76, DATED 2-3-1976 3/76 Paper) Sub : Paper - carbon paper and' stencil paper - Whether excisable under item No, 17 of CET. A doubt has been raised whether carbon paper/stencil paper, produced by conversion of duty paid base paper, should be treated as paper falling under Tariff Item 17(4) of Central Excise Tariff, or as an item of stationery, outside the scope of Item 17 of Central Excise Tariff. 2.  The matter has been examined and it is clarified for the information of the trade, that the carbon paper/ stencil paper, are articles ....
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....cted to various treatments, such as coating, impregnating, corrugation, creping and design printing) not elsewhere specified 1 (Forty per cent   ad valorem) 5.  The Assistant Collector was of the view that carbon paper should be treated as coated paper falling under tariff item 17(2). Against the order of the Assistant Collector, the petitioner filed an appeal before the Appellate Collector of Central Excise, Madras. 6.  The adjudication made by the Assistant Collector, was followed by a demand as per Annexure 'H' under which the difference of duty for the period from 16-10-1978 to 15-4-1979 was demanded and in addition, the duty payable thereafter for 16-4-1978 to 22-2-1980 was also demanded. Before the appellate Collector, only the original order of the Assistant Collector was challenged and the demand for the subsequent period is challenged in these writ petitions. 7.  The Appellate Collector of Central Excise, Madras, by his order dated 27-12-1980 dismissed the appeal agreeing with the order of the Assistant Collector and held that the carbon paper was rightly brought to tax under tariff item 17(2) as coated paper. Being aggrieved....
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....eping and design printing), not elsewhere specified. paper Twenty-five per cent   ad valorem 1 (Forty per cent  ad  valorem) 11.  There was further amendment to item No. 17 by the Finance Act of 1982. Item 17 was amended with effect from 27-2-1982, and two specific entries were added. They are (3) and (4) which are re-produced below : Item No. Description of goods Rate of duty 17. xx xx (3) Carbon and other copying papers (including duplicator stencils) and transfer papers, whether or not cut to size and whether or not put to in boxes. 32 ½% ad valorem    (4) Boxes, cartons, bags and other packing containers (including flattened or folded boxes and flattened or folded cartons), whether or not printed and whether in assembled or unassembled condition. 32½% ad valorem    12.  Relying upon this amendment which was brought into force with effect from 27-2-1982, the learned Counsel for the petitioner contends that till the carbon paper w....
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....s the process that the ordinary paper undergoes and the treatment that is given to base paper for converting it into carbon paper, it may appropriately fall under the description of 'coated paper'. 14.  Trade notice 56/76 was issued by the Collector on 2-3-1976. This trade notice was based on the instructions issued by the Board that carbon paper should be commercially recognised only as an article of stationery falling under entry 68. Item 17 was amended with effect from 27-5-1976 and sub-clause (2) was amended which among other things, included coated paper. Subsequent to the amendment to Item 17 by adding coated paper, it is to be noticed that there was no further clarification or trade notice issued by the Collector or by the Central Government bringing carbon paper specifically within the description of 'coated paper' as per the amended item 17(2). 15.  It is only on 22-11-1979 that the Collector of Central Excise, Bangalore issued the trade notice clarifying the position regarding classification of carbon paper under Item 17. This classification as per the trade notice is challenged by the learned Counsel for the petitioner that such a classification should no....