COLLECTOR OF CENTRAL EXCISE, KANPUR vs KRISHNA CARBON PAPER CO.

The Supreme Court ruled that carbon paper does not fall under the definition of 'paper subjected to coating' as per sub-item (2) of item 17 of the Central Excise Tariff prior to its amendment in 1982. The Court emphasized that fiscal entries should be interpreted in their popular sense, as understood in the relevant trade, rather than in a strict technical sense. Consequently, the demand for central excise duty on carbon paper for the period before the amendment was dismissed, affirming the Appellate Tribunal's decision that carbon paper was classified under Tariff item 68 before the amendment.