ORDER
S.D. Jha, Vice-President (J)
1. There is a telegraphic request for adjournment from Shri Krishnamurthy, respondents’ advocate on the ground of sudden illness. In view of what follows we have not considered it necessary to accept this request and proceed to dispose of these appeals on merits.
2. We have heard Shri Shishir Kumar, S.D.R., for the appellant.
3. The issue for decision in these appeals is classification for the purpose of Basic Customs duty on Cartridge Paper of size 22″ x 33″ and of substance 150 Grams per Sq. Mtr. While the importer claims classification under Heading 48.01/21(3) (other than printing and writing paper) of CTA, the Revenue at the time of import has assessed it under sub-heading (1) (not elsewhere specified) ibid. In appeal, however, the Collector of Central Excise (Appeals), Bombay relying on ISI-4661 of 1968 accepted the respondent’s (appellants before him) claim for classification under sub-heading (3) considering it more appropriate and allowed the appeal. It is this order which is challenged before us by the Collector of Customs, Bombay.
4. From the grounds of appeals we observe that the main ground is reliance on Government of India Order No. 839 of 1980, dated 7-7-1980. Ground No. 2 of the appeal for proper appreciation is set out below :-
“The Govt. of India in order in revision No. 839/1980, dated 7-7-1980 has held that “Cartridge paper of substance below 85 gms. is known and used as printing and writing paper assessable under BTN No. 48.01/21(3) while such paper of substance exceeding 85 gms. is known as Cartridge paper assessable under BTN No. 48.01/21(1).”
For examining the correctness of this ground we have looked into Govt. of India order and we find that the order related to Central Excise Tariff Item 17(2) where Cartridge paper specifically figures in the item. The order did not at all relate to Customs Tariff where the expressions used and the structuring are different. Therefore, ground No. 2 in the Memo. Appeal as set out above does not correctly represent the Government of India decision.
5. From paras 10, 11 & 12 of the Government of India order we observe that Cartridge paper would also be offset printing paper although for Central Excise Tariff, in view of the expressions used therein and it’s restructuring may not merit classification as printing and writing paper. That however, is not the case with the heading of Customs Tariff. The same are reproduced below :-
“10. Government observe that according to the “Checical Dictionary and Encyclopaedia Treatment” by ‘Barnes and Noble’ cartridge paper has been defined as the term applied to “rather strong and rigid printing paper which are used in the advertising field or in book printing”. Furthermore, according to the 1SI glossary of terms used in paper trade industry, ISI 4661 of 1968 cartridge paper has been defined as a “hard sized and strong paper generally fluffing characteristic” and offset cartridge paper has been defined as “special variety of hard sized and strong paper generally free from loading and usually with a mat surface with dimensional stability and suitable for offset printing”. Government further observe that at P.104 of the Paper Trade Manual by M/s. Raghu Nath Dutt and Sons Ltd., Calcutta, offset paper has been defined as a “hard, non-stretching non-fluffing Cartridge paper free from cockling and wavings and used for multi-coloured printing by offset process”. In the same book at P.83 cartridge paper has been defined as “a kind of hard and tough paper generally with rough surface originally used for cartridge manufacture and now commonly used as drawing paper, cover paper, envelope paper and for offset printing purpose”. From the above data it is evident that the impugned paper is known as cartridge paper in the paper trade industry.
11. Government observe that in Appendix VII of the Report of Tariff Commission of Government of India on ‘The Fair Ex-Works and Fair Selling Prices of paper and paper board (1956)’ off set/cartridge paper have been reported to be “suitable for the offset printing process. This type of paper is normally made from grass stock or bamboo and may contain some amount of rags and wood pulp. It may be white or coloured. For purposes of printing it is normally below 85 grams per sq. mt. while for drawing it is 85 grams per sq. mt. and may also be tubsized. It includes ordinary litho paper”. Govt. further observe that at P.51 of the “Paper Trade Manual’ by Raghu Nath Dutt and Sons Ltd., Calcutta, it has been recorded that cartridge papers are “strong and tough papers made from long fibred chemical pulp with or without rags. The smooth finished ones are used for offset printing”. From the above it is evident that cartridge papers are made from bamboo or grass stock and the use of rags as a raw materials is hot a must for the manufacture of cartridge paper. Government observe that the paper in question has also been admittedly manufactured from bamboo or grass stock and the fact that no rag has been used in the manufacture of the paper in question as contended by the petitioner is no relevance for the purpose of determining whether the said paper is cartridge paper or not. It is therefore seen that the contents and process of manufacture of the paper in question are the same as that of cartridge paper.
12. Govt. observe that from the definitions of the cartridge paper and offset printing paper as given in various books particularly the Paper Trade Manual published by M/s. Raghu Nath Dutt and Sons Ltd., it is seen that more or less all cartridge paper answer to the requirements of offset printing. If, therefore, the petitioner’s contention that all offset printing paper should be classified as printing and writing paper in view of its use as such were to be accepted then the very purpose of having a separate entry, inter alia for cartridge paper under Item 17 of the First Schedule to the Act as distinct from printing and writing paper which is categorised in a different sub-item of that entry would be nigh defeated. Further having regard to the fact that almost all varieties of paper barring rare exception are capable of use for purposes of writing and printing, if one were to go by that particular use of writing and printing alone, as the petitioner contend, for the purposes of classification under the various sub-items of Item 17 the very mention of most of the varieties of – the papers separately outside Item 17(3) would become redundant which is certainly not the case. For a proper interpretation of the scope and meaning of the various sub-items of Item 17 of the First Schedule to the Act one has therefore necessarily to go by the principle of harmonious construction. The task before the Govt. of India therefore is if and where a lind could be drawn to distinguish cartridge paper from writing and printing paper within the meaning of Item 17(3) of the First Schedule to the Act. Since Cartridge Paper is specifically mention in Item 17(2) it would be reasonable to infer that the scope of the term “Printing and writing paper” within the meaning of Item 17(3) would necessarily exclude cartridge paper notwithstanding the fact that it is also capable of use as printing and writing paper. As far as the petitioners contention regarding the use of goods is concerned, Govt. observe that the mere filing of affidavits by the petitioner that the paper in question which is described as offset printing paper is used for offset printing is tantamount to just stating the obvious. It does not take us very far in appreciating the petitioner case unless the said affidavit had indicated that the paper in question was not at all capable of use as cartridge paper and was not considered as cartridge paper by the trade. From a perusal of the affidavits, however, Government find that affidavit do not at all touch upon the question of whether impugned goods are known as cartridge paper to the trade or not. On the other hand the Assistant Collector in drawing the line of distinction between ‘cartridge paper’ and ‘offset printing paper1 which were deemed as ‘printing and writing paper” within the meaning of Item 17(3) has been guided by the report of Tariff Commission of the Govt. of India on the ‘Fair Ex-works and Fair Selling prices of paper and paper boards’. According to this report, it is only the offset printing/cartridge paper having grammage below 85 grams per sq. mt. which is normally known and used as printing and writing paper. Needless to say that this report of the Tariff Commission like any other report of the said commission is based on trade inquiry and after taking into consideration the views and practices of all the interests concerned in the paper industry. This report of the Tariff Commission could not, therefore, be brushed aside. Government consider that in the fact of this report which takes note of how different varieties of paper are understood by the trade concerned and which did not naturally leave any doubt regarding trade description of the goods for purpose of their classification under the Central Excise Tariff and which had covered a much wider area of inquiry before giving the finding on this point any exercise by the Assistant Collector by way of local trade inquiry was not called for and, therefore, superfluous. Further as already pointed out above the use of paper in question as ‘offset printing paper’ as stated in the affidavits produced is only a general statement of fact which in no way rules out the classification of the said goods as ‘cartridge paper’. Hence no fault can be found with the Assistant Collector for placing reliance on the report of the Tariff Commission vis-a-vis the affidavits filed by the petitioners (which merely stated that ‘offset printing paper’ in question was used for the purpose of printing) for arriving at the impugned findings by which the goods are held to be classifiable as ‘cartridge paper’ under Item 17(2) of the First Schedule to the Central Excises and Salt Act, 1944.”
Heading 48.01/21 is reproduced below :-
“Paper and paper board, all sorts, whether in rolls, sheets or cut to size or shape (including cellulose wadding, composite paper or paper board and impregnated, coated, corrugated, embossed, perforated, surface coloured or decorated, ruled or printed paper or paper board); filter blocks, slabs and plates of paper pulp; stationery made of paper or paperboard; articles not elsewhere specified, of paper, paper-board; paper pulp or cellulose wadding :
(1) Not elsewhere specified
(2) Newsprint containing mechanical wood pulp amounting to not less than 70 per cent of the fibre content (excluding chrome, marble, flint, poster, stereo and art paper)
(3) Other printing and writing paper.”
In our view the imported products in question between the two sub-heading No. (3) other printing and writing paper and (1) not elsewhere specified, would be more appropriately classifiable under sub-heading (3) as other printing and writing paper – this sub-heading being more specific to the residuary sub-heading. The Government of India decision relating to Central Excise on which the appellant has placed reliance does not rule out this classification for the purpose of Customs Tariff.
5. In view of the foregoing we find no force in these appeals and’ dismiss the same.
6. The respondents had also filed what they called a cross objection. It is in fact in the nature of comments on the ground of appeal and refers to certain decisions. The same is filed.