S.D. Jha, Vice-President

1. The question for decision in this appeal by the Revenue is proper classification of respondents product "Diamond Coat Art Paper" and "Diamond Coat Chrome Paper" -Diamond being brand name - whether it falls under Tariff Item 17(1) of the First Schedule to Central Excises and Salt Act, 1944 as it stood after its amendment on 28-2-1982 hereinafter called Central Excise Tariff and if so not eligible to exemption from demand of duty under Notification 63/82-C.E., dated 28-2-1982 or Tariff Item 17(2) of the Tariff making it eligible to exemption under the notification.

2. The present dispute arises under the following circumstances. Earlier the respondents had been classifying two description of papers set out above under Tariff Item 17(1) as coated printing and writing paper until amendment of Tariff Item 17 on 27-2-1982. Simultaneously with this amendment Notification 63/82-C.E., dated 28-2-1982 exempting converted types of paper and paper board other than wall paper, art and chrome board falling under sub-item (2) of Item 17 of the Tariff from whole of the duty of excise leviable thereon subject to fulfilment of base paper having paid appropriate duty wa