2020 (8) TMI 56

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....iff Heading 48101390 or 48115900 (as claimed by the department). 2.2 The proceedings in the present case commenced on the basis of an audit conducted in the month of November 2010 wherein it was observed by the Audit team that the appellant has misclassified their product namely, metalized paper, a kind of coated paper under Chapter Heading 48026920 by availing concessional rate of duty under Notification No.4/2006-CE dated 01.03.2006. The audit observed that the appellant has classified their product- coated paper under Chapter Heading 48026920 as "Poster Paper" instead of 48115900 and has accordingly short paid the duty during the period Jun 2007 to July 2009. 2.3 On 08.03.2011, the Superintendent wrote to the appellant seeking an explanation to the aforesaid audit observation. 2.4 Vide letter dated 07.04.2011, the appellant submitted that the paper cleared by them was covered by layer of Aluminum and cannot be classified under Chapter Sub-Heading 49115900. The sub-heading 48115900 covers paper and paper board coated, impregnated or covered with plastic (excluding adhesives). The appellant's product is not covered or coated with plastic. Therefore, the classification of ....

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....lay) and inorganic substances and is free from plastic. 2.13 Further 6 SCNs came to be issued to the appellant, all proposing classification of the appellant's product under 4811 5900. Details of the said SCNs are as under: (i) SCN dated 27.12.2012 demanding duty for the period December 2011 to July 2012. (ii) SCN dated 22.08.2013 demanding duty for the period August 2012 to May 2013 (iii) SCN dated 23.06.2014 demanding duty for the period June 2013 to March 2014 (iv) SCN dated 16.04.2015 demanding duty for period April 2014 to February 2015 (v) SCN dated 08.02.2016 demanding duty for the period March 2015 to September 2015 (vi) SCN dated 02.11.2016 demanding duty for the period October 2015 to July 2016. 2.14 The appellant in their reply dated 24.01.2014 to SCN dated 22.08.2013, made a categorical assertion that the appellant's product cannot be classified under 48115900 and would merit classification under 4810 1390. It was categorically asserted by the appellant that the appellant's product is coated on one or both side with kaoline (China clay) and inorganic substances i.e. aluminium and, therefore, cannot by any reaso....

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....14 --- In sheets with one side not exceeding 435 mm and the other side not exceeding 297 mm in the unfolded state:     4810 14 10 --- Imitation art paper Kg 10% 4810 14 20 --- Art paper Kg 10% 4810 14 30 --- Chrome paper or paperboard Kg 10% 4810 14 90 --- Other Kg 10% 4810 19 -- Other     4810 19 10 --- Imitation art paper Kg 10% 4810 19 20 --- Art paper Kg 10% 4810 19 30 --- Chrome paper or paperboard Kg 10% 4810 19 90 --- - Other Paper and paperboard of a kind used for writing, printing or other graphic purposes, of which more than 10% by weight of the total fibre content consists of fibres obtained by a mechanical or chemi-mechanical process: Kg 10% 4810 22 00 -- Light-weight coated paper Kg 10% 4810 29 00 -- - Other Kraft paper and paperboard, other than that of a kind used for writing, printing or other graphic purpose. Kg 10% 4810 31 00 -- Bleached uniformly throughout the mass and of which more than 95% by weight and weighing 150 g/m2 or less Kg 10% 4810 32 00 ....

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....mpregnated Kg 10% 4811 90 14 ---- Chromo board Kg 10% 4811 90 15 ---- Raw base paper for sensitizing, coated Kg 10% 4811 90 16 ---- Surface marbled paper Kg 10% 4811 90 17 ---- Leather board and imitation leather board Kg 10% 4811 90 18 ---- Matrix board Kg 10%   --- Other     4811 90 91 ---- Grape guard paper Kg 20% 4811 90 92 ---- Asceptic packaging paper Kg 10% 4811 90 93 ---- Thermal paper for fax machines Kg 10% 4811 90 94 ---- Thermal paper in jumbo rolls (size 1 mt and above in width and 5,000 mt and above in length Kg 10% 4811 90 99 ---- Other Kg 10% 2.18 The main heading 4810 covers paper and paper board coated with kaoline (China clay) or other inorganic substances. The appellant purchases kaoline coated paper either locally or by import. The appellant further undertakes the process of coating of aluminium by passing the said paper through vapours of aluminium vacuum. The CRCL report categorically states that the appellant paper is coated on one side with metal powder i.e aluminium....

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....Authority in its order has also given the finding that the nature of coating was declared by the party only after the report of the CRCL and the appellant had not declared the fact before the CRCL report was given. This finding is contrary to the facts on record. In the first SCN dated 22.12.2011, it refers to the reply dated 7.4.2011, submitted by the appellant to the Audit objections clarifying that the appellant product's i.e. Paper and paper board is coated with aluminum and is free from plastic.In fact, the finding of the adjudicating authority of not mentioning the coating of the aluminum makes it clear that if the product paper is coated with aluminium, it will be covered under heading 4810 as the said heading covers paper and paper board coated with inorganic substances. Once the product is classified under Tariff Heading 4810, it would automatically go out of Tariff heading 4811 as the said tariff heading 4811 covers paper and paper board other than of the kind described in 4810. When there is a specific entry for a product, it should prevail over a general entry. 2.22 The onus of establishing that goods are classifiable under a particular tariff entry lays upon the Rev....