TaxTMI 
TaxTMI 
1997 (7) TMI 395
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....7 of the original authority's order the position is set out as under :- 7. In view of the above discussions, it is felt that the base paper (Ch. Hdg. 48.02) becomes a coated paper in rolls in the intermediate stage (4810.10). Even after the graphical printings on this paper, it does not alter its classification as a converted type of paper (coated paper) under 4810.10. Thus, the processes of wet conversions imparted on the base paper, produces an improved grade of paper, at the intermediate stage. The converted type of paper, thus produced becomes the input for a finished paper article. This has been achieved by the processes of cutting and slitting to the required lengths and widths. The final ECG Paper are meant for specific use on specific ECG machines. The process of cutting and slitting imparted on the converted jumbo rolls transforms and manipulate the said jumbo roll to a commercially recognisable ECG paper rolls. It is reiterated that while the width of the original input papers ranges from 43 cms to 77.5 cms, the width of the end product, viz., the ECG paper ranges from 45 mm to 63 mm so also the length varies widely for specific sizes. The sample invoices for the ....
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....covered with a thin coating of cellulosic plastic material. In both these cases he has expressed the view that they can be considered as converted types of paper which are known to be used in automatic recording instruments. 4. The chief chemist who was consulted in the matter has also advised that these two types of paper can be considered as "paper obtained by one side of paper subjected to printing of colour, with or without design". The Board has accepted the advice of the Chief Chemist. Accordingly ECG paper and Barospeedograph paper of the nature described above are eligible for assessment at nil rate of duty under Notification No. 68/76". 3. And he has gone on to follow the rationale as given in the Tariff Heading as under : "There is no valid reason to take a different view even in the context of the Central Excise Tariff Act, 1985. However, according to the Assistant Collector this converted paper in jumbo rolls becomes the input which undergoes the process of cutting and slitting to the required length and width meant for ECG machines. The ECG rolls with definite length and width and specifically designed for ECG machines and are known in the market as ECG p....
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....sultant article attains marketability. In the instant case, the ECG Rolls was manufactured pursuant to various manufacturing operations at five different stages and ultimately the rolls were cut and slit for use in the ECG machinery. The resultant product is marketable as such and there is no dispute with regard to the processes involved and marketability. Collector (Appeals) ought to have investigated these aspects and judgments which in the finality prove that cutting and slitting would amount to manufacture and that the resultant manufactured product would be an article of paper. 6. The learned JDR for the department has urged that the goods in question, even though are marketed as ECG paper, could yet be considered as an article of paper for the reason that these are cut to size and the roll in reel form is for fitment into the ECG machine. For that reason, he has pleaded it should be considered as an article and not merely a paper cut to size. He has pleaded that in the case of Dippin Textiles, the Tribunal has clearly held that when jumbo rolls of coated film are cut into pancakes, the pancakes are new articles and are, therefore, liable to duty. Likewise, he has plea....
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....he scope of entry, articles of entry is concerned, the same has not been defined under the Chapter Notes nor it stands amplified by reading of the Tariff entries. He has, therefore, pleaded that the goods should be assessed based on the wording of the Tariff entry itself. He has pleaded a key probably to the scope of the term articles of paper could be from Chapter Note 1-48 whereunder Chapter Note 1G and 1H, certain categories of articles of paper falling under Chapter 42, 46, 64 and 65 stand excluded. He has pleaded these articles which figure in these Chapters have a definite configuration. He has pleaded the essential character of the paper in those cases stands lost and the use of the goods is by reason of the form in which the paper by its use has emerged. He has pleaded, in the present case the essential character of the paper is not lost and it continues to be converted paper and its use is also by reason of its being as a paper as the ECG output is recorded on the paper by a stylus as just as it would be by writing or other purposes. He has pleaded just because the paper has got converted does not by itself take it out of the purview of the paper, its identity is not lost ....
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.... corrugating (wet converting) and (2) fabrication of a multitude of finished products such as bags, cartons, packaging materials, napkins, facial tissues, cups, plates and the like (dry converting). A couple of other similar authorities have been cited before us which are almost on similar lines. There is little doubt, therefore, that the process of slitting is a process of conversion as understood in the paper industry. If this be so, then, the slitted paper in reels manufactured by the appellants fall within the description of converted types of paper for the purpose of Notification No. 49/87, dated 1-3-1987. The subject goods are, therefore, eligible for duty exemption in terms of the said notification. 8. He has pleaded in the latter case of M/s. Pirolite Industries Ltd., it has been held that slitting, cutting of impregnated filter paper does not amount to manufacture. He has pleaded, it is for the limited purpose of the proceedings he is not putting forth any detailed arguments as to whether the slitting and cutting of ECG rolls as Jumbo rolls would amount to manufacture. The point he is highlighting is that by reason of the emergence of the goods in a roll form after....
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.... 48.23. The Chapter Heading 48.23 under HSN is reproduced below for convenience of reference : 48.23 OTHER PAPER, PAPERBOARD, CELLULOSE WADDING AND WEBS OF CELLULOSE FIBRES, CUT TO SIZE OR SHAPE; OTHER ARTICLES OF PAPER PULP, PAPER, PAPERBOARD, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBRES. 10. It is seen from this, we observe that the main heading as it is in both the Central Excise Tariff and HSN has two portions. The first portion deals with paper, paper board, wadding webs of cellulose fibres, cut to size or shape and after the second portion it deals with other articles of paper pulp etc. We observe that Tariff Heading 4823 both under the HSN and Central Excise Tariff are residuary tariff headings and all types of papers or articles of paper which are not covered under the headings upto 48.22 are to be classified under this heading. There is no dispute that the goods in question are not covered under any of the headings upto 48.22 under Chapter 48. Therefore, for classifying any goods, primarily we have to find the key in the wordings of this Tariff Heading itself. While we find that certain items like toilet paper which are also paper in roll....
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....of overlooking the fact that the structure of the Central Excise Tariff is based on the internationally accepted nomenclature found in the HSN and therefore, any dispute relating to tariff classification must, as far as possible, be resolved with reference to the nomenclature indicated by the HSN unless there be an express different intention indicated by the Central Excise Tariff Act, 1985 itself. The definition of a term in the ISI Glossary, which has a different purpose, cannot, in case of a conflict, override the clear indication of the meaning of an identical expression in the same context in the HSN. In the HSN, block board is included within the meaning of the expression "similar laminated wood" in the same context of classification of block board. Since the Central Excise Tariff Act, 1985 is enacted on the basis and pattern of the HSN, the same expression used in the Act must, as far as practicable, be construed to have the meaning which is expressly given to it in the HSN when there is no indication in the Indian Tariff of a different intention. 12. We are, therefore, of the view that taking into consideration the scheme of the Tariff and the wording of the Tariff ....