Facts
- M/s. Lsquare Eco-Products Pvt Ltd is a manufacturer of Kra paper honeycomb boards or paper honeycomb boards using the kra paper, paper honeycomb core and adhesives.
- First applicant prepares the core material by using the two or more sheets of honeycomb-like structure kra paper which is glued together.
- These corrugated layers open out in the form of a continuous honeycomb-like grid with centre of each corrugated strip attached to another layer of corrugated strip upon expansion.
- This paper honeycomb board by structure is very similar to corrugated paper boards (listed under 4808100).
- The top and boom faces of these boards may be or may not be printed to carry out the product details.
- These paper honeycomb boards used in the primary packing of goods as a cushioning material, separators or edge protector, to make shipping cartons of goods and as pallets and pallet boxes.
Issue before the AAR
- Whether the HSN code applicable for kra paper made honeycomb boards be 48081000 or 48089000?
Discussion and Finding of AAR
- Applicant manufacture Kra paper honeycomb boards or paper honeycomb boards using the kra paper, paper honeycomb core.
- These paper honeycomb boards consist of 80 to 90% of kra paper and rest is paper to a paper adhesive which is used in the primary packing of goods
- kra paper honeycomb boards or paper honeycomb boards mainly consists of kra paper up to the extent of 80 to 90% and remaining is paper to paper adhesive.
- structure and purpose for which kra paper honeycomb board or paper honeycomb board used are similar to the corrugated paper board (listed under 48081000)
- Hence this honeycomb paper board classified under the heading 48089000 as other instead 48081000.