2016 (11) TMI 1522 - AT - Central Excise

Classification of the activities undertaken by the appellant - recording of some sound or other phenomena (key data) on the smart card - whether the activity classified under chapter 49 or Chapter 85? - Held that - the Revenue has not successfully countered the findings of the impugned order passed by the Commissioner (Appeals) - Commissioner (Appeals) has held that without any substantive and tangible evidence, the activity undertaken by the appellant in the instant case was nothing but of printing of these cards liable merit their classification under Chapter heading 4901.90 and for which they were very right in following the due and correct proper procedure, as laid down by the Department - there is no scope to interfere with the impugned order passed by Commissioner (Appeals) - appeal dismissed - decided against Revenue.

Summary

Issues Involved:
Classification of activities for Central Excise duty under different tariff headings.

Analysis:
The appeal concerns the classification of activities by the appellant under the Central Excise Tariff. The Revenue contested that the appellant's activities, specifically recording data on smart cards, amount to manufacturing, attracting duty under specific tariff headings. However, the Commissioner (Appeals) dropped the demand of Central Excise duty against the appellant. The issue revolved around whether pre-embedded Plain Identity Cards/Smart Cards sourced by the appellant for printing should be classified under Chapter Heading 8542/8523. The adjudicating authority acknowledged that no manufacturing activities beyond printing were carried out by the appellant. The Commissioner (Appeals) highlighted that the distinctive character of the cards was due to the data imprinted on them, leading to their classification under sub-heading 4901.90. Circulars issued by the Board supported this classification, emphasizing that the activity of printing these cards falls under Chapter 49 of the Central Excise Tariff, covering printed material.

The Tribunal, after reviewing the facts and submissions, upheld the findings of the Commissioner (Appeals). They concluded that the Revenue failed to counter the Commissioner's findings, and hence, there was no basis to interfere with the impugned order. Consequently, the appeal filed by the Revenue was dismissed as lacking merit. The Tribunal's decision aligned with the Commissioner's order, emphasizing the correct classification of the appellant's activities under Chapter heading 4901.90 based on the evidence presented and the provisions of the Central Excise Tariff Act. The judgment underscored the importance of following established procedures and legal provisions in determining the appropriate classification for Central Excise duty, as outlined in the Circulars issued by the Board.