2014 (7) TMI 148 - AT - Central Excise

Classification - Chapter 49 or 94 - appellant s claim is that vinyl cut graphics, vinyl self-adhesive stickers and translates are not liable to excise duty since they are products of printing industry - Department has classified these items as parts of illuminated signboards. - Held that - unless an item is part of illuminated signboard, the same cannot be classified under Chapter 9405 - the products such as translates, vinyl self-adhesive stickers and vinyl graphic cut by the appellants cannot be considered as parts of signboards and from the manufacturing process, it emerges that these are products of printing industry since the processes undertaken are covered by the Chapter Note. - appellant s claim that these items cannot be classified under CETH 9405 has to be accepted. - Decided in favor of assessee. As regards signages on metal base and illuminated glow signs and other materials - parts of signboards - Held that - appellants are not disputing the liability and therefore the demand on these items has to be upheld. - Since the appellants have not taken registration and have not paid excise duty, we find that the penalty has been correctly imposed - demand on this account confirmed with interest and penalty - Decided against assessee.

Summary

Issues:
Classification of products for excise duty liability - whether certain items are parts of illuminated signboards or products of the printing industry.

Analysis:
The appellant was engaged in providing illuminated signboards, nameplates, self-adhesive graphic cut vinyl stickers, signages, and parts with illuminated signboards. The Department initiated proceedings to demand excise duty for the items provided by the appellant, claiming them to be parts of illuminated signboards. The appellant argued that certain products like vinyl cut graphics and stickers are products of the printing industry, not liable for excise duty. The Department classified these items as parts of illuminated signboards under Chapter 9405, while the appellant contended they should be classified under Chapter 49, exempt from excise duty.

The Tribunal analyzed Chapter Note 2 of Chapter 49, which includes various methods of reproduction, to determine the classification of the products. The appellant's products, such as translates, vinyl stickers, and graphics, were found to be covered under Chapter 49, specifically sub-heading 4901.90, with a duty rate of 'nil'. On the other hand, Chapter 94.05 covers items like illuminated signs and nameplates, which are parts of illuminated signboards. The Tribunal concluded that unless an item is part of an illuminated signboard, it cannot be classified under Chapter 9405. The manufacturing process and Chapter Note 2 indicated that the products in question were products of the printing industry, not parts of signboards.

The Tribunal upheld the appellant's claim that certain items were not parts of illuminated signboards and should be classified under Chapter 49. However, signages on metal base and other materials produced by the appellant, which were parts of signboards, were found to be liable for excise duty. The duty demand for the relevant periods was calculated, penalties were imposed for non-payment of excise duty, and the appeal was disposed of accordingly.