2011 (3) TMI 659 - AT - Central Excise

Demand - Classification - Flexographic plates manufactured by the assessee are blocks for printing purpose - In the printing industry, both the unprocessed photopolymer plate material and processed photopolymer plate (printing block) are commonly called as photopolymer plates - The expert opinion given by various engineering colleges and the Government Institute of Printing Technology clearly point to the fact that the relief image plates which is ready for use in printing is a printing block - it is very clear that the photopolymer relief image plate manufactured by the party is known as printing blocks both in the commercial parlance and also in the technical sense - The term printing block is in the company of printing type and both have the same nature and same usage i.e. they are ready for printing. Therefore, what has to be seen is whether the product is capable of being used for printing purpose which is obviously so in the instant case - Held that the photopolymer relief image plates manufactured by the assessee qualifies for the description of printing blocks and accordingly, eligible for the duty exemption during the relevant period - Decided in favor of the assessee

Summary

Issues:
Classification of 'Flexographic plates' as 'blocks for printing purpose' under Heading No. 8442.10 for nil duty rate or under Heading No. 8442.90 for chargeable duty.

Analysis:
The appeal involved a dispute over the classification of 'Flexographic plates' manufactured by the assessee as either 'blocks for printing purpose' under Heading No. 8442.10 attracting nil duty rate or under Heading No. 8442.90 chargeable to duty. The Commissioner initially concluded that the plates were 'printing blocks' under Heading No. 8442.10, dropping further proceedings. The Tribunal partially allowed the department's appeal on limitation and remanded the case for fresh classification based on expert opinions. The Government Institute of Printing Technology, Mumbai, opined that the plates are distinct from 'printing blocks' and should be classified under Heading No. 8442.90. However, expert opinions from other institutions supported the classification as 'printing blocks'. The Commissioner observed that commercial invoices described the products as printing blocks, leading to the conclusion that they fall under Heading No. 8442.10.

The Revenue contended that the product should be classified as a printing plate, ineligible for duty exemption/concession. The respondent argued that the product met the criteria for 'printing blocks' exempted from duty under relevant notifications. The manufacturing process involved steps such as image transfer and etching to create relief images suitable for printing. The respondent highlighted duty exemptions applicable to 'printing blocks and printing types' under various notifications and the tariff.

Expert opinions from different institutions and the Government Institute of Printing Technology supported the classification of the relief image plates as 'printing blocks'. The commercial description of the product as printing blocks, along with the historical context of duty exemptions for such products, reinforced the classification. The Tribunal emphasized that a liberal interpretation was warranted, following the principle of wider interpretation for products falling within exemption scopes. Consequently, the Tribunal upheld the original order, rejecting the department's appeal and affirming the duty exemption eligibility for the 'printing blocks' manufactured by the assessee.

In conclusion, the Tribunal dismissed the appeal, affirming the classification of the photopolymer relief image plates as 'printing blocks' eligible for duty exemption during the relevant period. The decision was based on expert opinions, commercial descriptions, historical duty exemptions, and the nature of the product suitable for printing purposes.