The Allahabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the laminated paper is classifiable under the category of other paper cut to size or shape and not under the category of paper and paper board.
Well-Tech Packaging, the appellant assessee was engaged in the manufacture of Corrugated Boxes and Laminated Paper falling under Chapter 48 of the First Schedule to Central Excise Tariff Act, 1985 at Rudrapur Uttarakhand and claimed for the excise duty exemption under the exemption notification.
The assessee appealed against the order passed by the Commissioner (Appeal), Custom & Central Excise Meerut for confirming the excise duty demand of Rs 30,78,288/- recovered from the assessee under Section 11A of the Central Excise Act, 1944 and for the imposition of penalty.
Atul Gupta and Prakhar Shukla, the counsels for the assessee contended that the laminated paper manufactured by the assessee was packing/ wrapping of photocopy paper and hence will be correctly classifiable under the category of other paper cut to size or shape.
Sandeep Pandey, the counsel for the department contended that the goods which was manufactured by the assessee were rightly classifiable under the category of paper and paper boards and the assessee was not eligible for the exemption.
The Bench observed that as per General Rules of Interpretation and Note 1 of the General Explanatory Notes, the subject goods would merit classification under the category of ‘other paper cut to size or shape’.
The two-member bench comprising P K Choudhary (Judicial) and Sanjiv Srivastava (Technical) quashed the penalty and excise duty demand imposed against the assessee while allowing the appeal filed by the assessee.
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