Malayala Manorama Company Limited Vs Commissioner of Customs (CESTAT Bangalore)
CESTAT Bangalore held that since tests were not conducted in accordance with International Organization Standardization [ISO] the consignment is classifiable as ‘Newsprint’ under Customs Tariff Heading [CTH] 480180. Accordingly, order set aside.
Facts- The appellant had imported a consignment of 243.83 MTS of paper in reels declaring the same as standard “Newsprint” falling under Customs Tariff Heading 480180. Samples were drawn and sent for test to ascertain whether the item satisfies the definition of ‘newsprint’. The test result revealed that in the imported goods, Mechanical Wood Pulp (MWP) content was less than 65%, hence, not newsprint. Accordingly, the appellant was directed to remit the duty on the goods reclassifying the imported goods as paper for printing other than newsprint falling under CTH 480260 and CETH 480290. The differential duty was worked out to Rs.30,44,186/-on finalisation of provisional assessment which was directed to be paid. On adjudication the said demand was confirmed vide order dated 28.08.2002.
Conclusion- During the course of cross examination of the analyst also, it revealed that the tests were not done in accordance with ISO standard, but as prescribed by the Chief Chemist on the basis of BIS standards. Thus, if different standards are adopted for testing of the samples, the results are distorted and bound to be different.
