ORDER
S.K. Bhatnagar, Vice President
1. This is an appeal against the order of Collector of Customs (Appeals) dated 8-9-1986.
2. Ld. Counsel stated that the appellants are manufacturers of transformers and allied equipment at Angamally in Kerala.
3. They have imported creped kraft paper described in the import documents as “100% stretch creped kraft paper”. A sample of the paper is enclosed with the appeal memorandum.
4. This paper is used for insulation purposes and is made by creping two layers of thin kraft paper. By this process the thickness goes up to the crepe hills and air columns in between and the thickness after creping is 0.38 mm. Standards were laid down for papers for electrical purposes by the British Standard Institution. These standards (RS 698 : 1956) were not applicable to the imported crepe paper but to the original kraft paper from which the imported creped kraft paper was made. Separate standards (RS 5068 : 1974) have been laid down by the said British Standard Institution for crepe and kraft paper for electrical purposes as is evident from the relevant extracts thereof.
5. The issue involved in this case is whether the imported item is an electrical crepe kraft paper entitled to the benefit of Notification No. 37-Cus-toms, dated 1-3-1978.
6. In respect of consignment in question a sample was sent in December 1979 by the Cochin Customs for testing at National Test House, Alipore, Calcutta and in the meanwhile the imported consignment was allowed to be cleared under PD Bond No. 69/80. As the original sample was found to be insufficient, the Customs Deptt. obtained a second sample from the appellant and this was finally tested only sometime in 1984 and the results of the test were communicated to the appellant vide letter dated 23-3-1985. A copy of the same along with the tests certificate dated 31-1-1985 has been annexed with the memo.
7. On the basis of this test report, a demand was issued and subsequently confirmed by the A.C. denying the benefit of the aforesaid notification.
8. They filed a petition before the Collector (Appeals) but the Collector (Appeals) also dismissed the same. Hence this appeal.
9. It was their contention that the National Test House (NTH), Alipore has committed a patent error in determining whether the imported crepe kraft paper complied with the standards under BS 698-1956. It was their submission that this standard has been laid down for kraft insulating paper (Class IA) low absorbent, ranging in thickness from 0.11 mm to 0.25 mm and for kraft insulating paper (Class IB), high absorbent ranging in thickness from 0.16 mm to 0.25 mm. As against this the sample tested was creped kraft paper made by creping two layers of kraft paper and having a thickness of 0.38 mm. The relevant British Standards applicable to crepe paper is BS 5068, April, 1974 and the electrical break down voltage test is not prescribed for crepe kraft insulating papers in the applicable standards BS 5068-1974. This is because the creped paper has crepe hills and air columns in between and if an electrical break down voltage test is conducted on this, it will not give the correct break down voltage (BDV) of the paper. If one wants to know the correct BDV of the crepe paper one has to conduct the BDV test on the base paper i.e. the plain or base kraft paper from which the creped paper is made by bonding and creping two plain papers together. Admittedly, it was not the plain paper that was imported or Which was BDV tested in the Alipore National Test House. As BS 698-1956 is not applicable to crepe papers but applicable only to plain base papers this test conducted by the National Test House, Alipore was not valid.
10. It was their contention that the result of the aforesaid test was irrelevant and inapplicable and could not be relied upon.
11. Furthermore, the appellants also had no occasion to independently retest the material imported in 1979 since the results of the test carried out by the NTH, Alipore was given to the appellant only in 1985 by which date the imported consignment had been fully utilised.
12. It was their contention that the imported goods were known as ‘Electrical grade insulation paper’ and going by the commercial test parlance, it should be so held.
13. This paper is unsuitable for any other purpose or use to which paper is normally put.
14. It was also their contention that such test conducted is also not specified in the Customs Tariff or in the relevant notification. Ld. D.R. drew attention to the order-in-original and order-in-appeal. It was his submission that the Alipore Test House is an expert body and the certificate issued by it after testing of the sample confirmed that imported sample was not of electrical grade; hence a demand was raised and confirmed by the A.C.
15. Ld. DR drew attention to the order-in-original and order-in-appeal. It was his submission that the Alipore Test House is an expert body and the certificate issued by it after testing of the sample confirmed that imported sample was not of electrical grade; hence a demand was raised and confirmed by the A.C.
16. Ld. Collector (Appeals) has in his order discussed in detail the test results. These results show that the sample was tested, inter alia, for electrical BDV as well and it has been remarked therein that when compared with the requirement of BS 698-1956, specification for papers for electrical purposes, the value of electrical BDV (3,947V/mm) is lower than the minimum of 10,000V/mm and 6,000V/mm respectively for Class LA and Class IB kraft insulating papers and that is why it was not considered as electrical grade kraft paper as per the said standard.
17. The NTH, Alipore is a reputed and recognised institution and there was no reason to disbelieve the test report.
18. Moreover, the appellants have not produced any test report to contradict the impugned test report of the NTH, Alipore. They produced the suppliers test report at the time of importation or subsequently before provisional release but did not do so and have not done so even now.
19. A mere assertion on their part that the impugned goods were electrical grade insulation paper cannot stand against such a strong and reliable evidence.
20. That in the past such papers have been treated as or assessed as electrical grade paper was not sufficient to dislodge the department’s contention in the face of the Alipore Test Report.
21. Ld. Counsel stated that from the photocopy of BS 698 : 1956, it would be seen that it defines kraft insulating paper as “Paper made entirely from wood pulp manufactured by the sulphate process. The pulp is subjected to thorough washing to remove as far as practicable the chemicals used in manufacture.” In other words, the reference to kraft insulating paper in this standard is base paper and not to the crepe paper. It is BS 5068 : April 1974 which is the specification for crepe paper for electrical purposes. It indicates, inter alia, that it is the base paper of secondary crepe which is to comply with all the basic requirements for paper to Class I of BS 698 and in addition, shall comply with the test requirements for freedom from conducting particles given in that British Standard. For primary crepe, the fibres and their preparation shall be the same as that used to produce paper complying with Class I of BS 698 as regards electrical and other properties, and the parameters laid down therein did not include the one adopted by the Alipore Test House.
22. Hence, it is their request that this test report may be disregarded and the consignment may be treated as electrical kraft paper as per past practice.
23. We have considered the above submissions. We observe that the Bill of Entry shows that the consignment was imported in 1979 and the goods were released provisionally. It is undoubtedly unusual to have sent the sample for testing years later [as has been done in this case (the sample having been sent) as late as 1984].
24. However, from the submissions of the appellants, it is also clear that the second sample was obtained from the appellants themselves. Since the goods had already been released (provisionally), it is obvious that the Customs House relied upon the sample provided by the appellants and when this was so, the importer had not protested at that time, it was too late in the date to object now and deny that the result of the testing of such a sample could not be relied upon.
25. Again, the Alipore Test House also appears to have taken a lot of time in testing and has sent the result only in January, 1985. Be that as it may, the test report shows that the sample had been tested with reference to 6 different parameters including electrical break down voltage in volts (r.m.s.) at 50 Hz and conductivity of aqueus extract in (ms/m).
26. The report also indicates in its remarks that “when compared with requirements of BS 698-1956 specification for papers for electrical purposes the value of electrical break down voltage (3,947V/mm) is lower than the minimum of 10,000 V/mm and 6,000 V/mm respectively for Class IA. and Class IB kraft insulating paper. The same, therefore, is not considered as electrical grade kraft paper as per said standard.”
27. There is no doubt that the photocopy of the British Standard Specification for papers for electrical purposes filed by the appellant show that BS 698 :1956 is in respect of ‘kraft insulating paper’ as well and the BS 5068 : April 1974 is a ‘specification for crepe paper for electrical purposes’. At the same time, the copy of the BS 698:1956 filed before us appears to be incomplete as only pages 6 and 7 have been filed. That apart, it shows under the heading ‘specification’ and ‘scope’ only classification of such papers including Class IA and Class IB of low-absorbent, high-absorbent type and its range of thickness used in the electrical industry. These pages also give the definition of kraft insulating paper but do not show the parameters laid down for testing the kraft insulating paper for electrical purposes.
28. In the specification BS 5068 : April 1974 which specifically refers to kraft paper undoubtedly it is mentioned in the heading and scope of this British Standard Specification, the requirement for crepe paper made with kraft insulating paper classified as Class I in BS 698 or fibrous stock suitable for Class I of BS 698. It also gives the definition of all kraft insulating paper, Creping kraft paper, Primary crepe, the Secondary crepe, Grammage, Breaking length, Extended breaking length.
29. It also indicates the classification of crepe paper and the precaution to be taken when preparing samples and undoubtedly it indicates that some properties of the material are sensitive to atmospheric contamination, particularly from atmosphere a chemical laboratory, any prolonged storage shall be in clean, inert and impervious containers. It also refers to base material and creping; and shows that the paper may be either primary crepe or secondary crepe. The base paper of secondary crepe shall comply with all the basic requirements for paper to Class I of BS 698, and in addition, shall comply with the test requirements for freedom from conducting particles. For primary crepe, the fibres and preparation shall be the same as that used to produced paper complying with Class I of BS 698 as regards electrical and other properties. Apparent thickness of crepe paper; Apparent grammage of crepe paper; Degree of creping; Tensile strength; Elongation at break; Mineral ash, Conductivity of aqueous extract; PH value of aqueous extract; Conductivity of organic extract and Sludge and oil acidity.
30. It also indicates the formula of finding out tensile strength and the test for determination of mineral ash.
31. However, there is no reason to presume that such precautions as are prescribed for preparing and storing a sample of crepe kraft paper for electrical purposes were not taken by the NTH, Alipore, Calcutta. The fact remains that reference to BS 698 in its remarks also does not mean that the tests were invalid inasmuch as this standard has been referred to even in the specification for ‘crepe paper for electrical purposes’ indicated in BS 5068 (April 1974) shown by the ld. Counsel and the scope of this standard stands extended to specified requirements for crepe paper made with kraft insulating papers classified in BS 698.
32. The pages 6 and 7 of BS 698 : 1956 do not indicate any test or parameters laid down for testing kraft insulating papers but this must have been given in other pages since it is to lay down the test for electrical purposes; and in any eventuality the test results of the Alipore Test cover thickness in micron, tensile strength in N/25m width MD/CD, strength, per cent MD/CD, PH of aqueous extract, electrical break down voltage in volts and conductivity of aqueous extract refers to BS 5968 : 1974. Even if we compare the conductivity of aqueous extract given in BS 5068 : 1974 it should not exceed 10MS/m whereas in the Alipore Test House test it is 161; that the electrical BDV is an essential test for testing the item for electrical purposes can hardly be denied and is evident from the test report. The Alipore Test House is an expert body of national repute and therefore, once it so certifies the report is normally required to be believed unless it could be shown with reference to some standard technical literature and supplier’s test report or ascertained facts that same error had crept in.
33. In the BS 5068, relied upon by the ld. Counsel, Precautions to be taken when preparing samples have been indicated. Further it refers to the standard for both primary crepe and secondary crepe. The ld. Counsel has, however not filed all the appendices to this standard [e.g. appendices referred to are upto (k) but the appellants have only filed upto (G)]. In other words, both in respect of BS 698 : 1956 and BS 5068 : April 1974 complete material has not been filed before us. Be that as it may ld. Counsel’s submission that Alipore Test House has erred in referring to BS 5068 : April 1974 and its test report is invalid; is not borne out even from the extracts filed by them. There can be no presumption that the Alipore Test House did not know that parameters were required to be kept in view and what standard to apply in testing the crepe paper made with kraft insulating paper for electrical purposes. The appellants therefore, have not been able to convince us that the Alipore Test House report was required to be disregarded and should not be relied upon. In the circumstances, we see no reason to interfere with the order of the lower authorities. The appeal is therefore, rejected as already announced in the open court.