2013 (1) TMI 175 - AT - Customs

Import of printed material from USA - technical books relating to subject of textile colour designing/matching - classified under heading 49011010 or 49019900 - exemption notification no. 21/2002 denied as goods under importation were not in the nature of printed books - Held that - Perusing the samples of the items imported both color passport and F H color planner have introductory text and all pages have printed material on them including rectangular strips/chips of color of textile material. Obviously, a textile material cannot be printed on a paper and has to be pasted. Further, below every textile chip the color name and code is printed. Merely because the textile material occupies more space it cannot be stated that they are not books. As both color passport and colour planner bear ISBN numbers, which is also indicative that they are in the nature of books. Similarly, in the case of VCP Fall 2010, the product is very similar to colour passport and colour planner, the only difference being it does not have a ISBN number. It has printed matter on paper on every page and, therefore, no different treatment to the said items is to be given - in favour of assessee.

Summary

Issues: Classification of imported goods under heading 49019900 for exemption under notification no. 21/2002.

Detailed Analysis:
1. The appeal challenged the order-in-appeal passed by the Commissioner of Customs (Appeals), Mumbai-III, regarding the classification of imported printed materials by M/s Honesty Subscription Agency from M/s Pantone Inc. USA. The dispute was whether the goods qualified as printed books for exemption under notification no. 21/2002.

2. The original adjudicating authority classified the goods under heading 49019900, denying the exemption as they were considered not in the nature of printed books. The lower appellate authority allowed the exemption for certain items but rejected it for others, stating that items with textile swatches pasted on white sheets could not be considered printed books.

3. The appellant contended that the textile materials pasted on paper did not disqualify the items from being classified as printed books. The appellant argued that the fabric samples were integral to the books, which also bore ISBN numbers. The VCP Fall 2010 item lacked a sample before the appellate authority, leading to the appeal.

4. The Revenue's representative reiterated the lower authorities' findings, opposing the appellant's classification of the items as printed books.

5. The Tribunal examined the samples of the imported items, noting that the color passport and F+H color planner contained printed material, including textile color chips with names and codes. The Tribunal emphasized that the presence of textile material pasted on paper did not negate the classification as books, citing the analogy of photographs in a book. The items also bore ISBN numbers, indicating their book nature. The VCP Fall 2010, similar in content, lacked an ISBN number but contained printed matter on paper, leading the Tribunal to classify all items as printed books.

6. Consequently, the Tribunal held that all three items qualified as printed books and were eligible for exemption under notification no. 21/2002, allowing the appeal with consequential relief.

Judgment: The Tribunal classified the imported goods as printed books, overturning the lower authorities' classification under a different heading, and granted exemption under notification no. 21/2002.