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2014 (10) TMI 376 - AT - Central ExciseClassification of goods - Whether goods manufactured by appellant such as Pre-printed computer stationery, PIN Mailer stationery, Airway Bill stationery, ATM Roll stationery etc. fall under Note 14 to Chapter 48 introduced in the Finance Bill, 2012, or Chapter 49 of the CETA, 1985 as product of printing industry - Held that - PIN Mailer consist the details of the Bank and the terms and condition for use of such PIN Mailer in internet / mobile banking. On these PIN Mailers, the password / PIN number is printed apart from the name of the account holder. Therefore, the product clearly falls within the scope of Note 14 to Chapter 48. Therefore, for the period w.e.f. 29.5.2012 to November, 2012, prima facie, the products manufactured by the appellant would merit classification under Chapter 48 and liable to duty accordingly. An identical matter had come up before this Bench in the case of Alpha Carbonless Paper Manufacturing Co. Pvt. Ltd. reported in 2014 (2) TMI 589 - CESTAT MUMBAI and this Tribunal held that after amendment to 48 by Chapter Note 14, the ATM Rolls would merit classification under Chapter 48 and prior to amendment the product was classifiable under Chapter Heading 49. In the present case, the period involved is partly after the amendment, for the period 29.5.2012 to November, 2012. Therefore, the appellant has not made out a prima facie case for complete waiver of pre-deposit. No financial hardship is pleaded - Partial stay granted.
Issues: Classification of printed products under Central Excise Tariff Act, 1985.
Analysis: 1. Classification Dispute: The appeal before the Appellate Tribunal CESTAT MUMBAI concerns the classification of various printed products, including Pre-printed computer stationeries, PIN Mailer stationeries, Airway Bill stationeries, and ATM Roll stationeries. The Commissioner of Central Excise (Appeals) upheld the classification under CETH 48.20, leading to a duty demand of Rs. 24,65,327 for the period March 2012 to November 2012, along with penalties on the appellant and its Managing Director. 2. Appellant's Argument: The appellant argues that their products should be classified under Chapter 49 of the Central Excise Tariff Act, 1985, as 'Products of Printing Industry,' not under CETH 48.20. They contend that CETH 48.20 does not cover loose sheets or cards, printed or not. The bulk of the demand relates to PIN Mailers, which they claim should fall under Chapter 49. 3. Revenue's Argument: The Revenue, represented by the Addl. Commissioner, relies on Note 14 to Chapter Heading 48 introduced in the Finance Bill, 2008. This note states that if paper and paper products of certain headings are printed with specific elements, they should remain classified under those headings if intended for further printing or writing. The Revenue argues that this provision justifies the classification under CETH 48.20 from March 2012 onwards, supporting the demands made. 4. Tribunal's Decision: After considering both parties' submissions, the Tribunal examined the PIN Mailers in question, noting that they contain bank details, terms of use, and printed PIN numbers. Based on Chapter 48 Note 14, the Tribunal found that the products fell within the scope of Chapter 48. Referring to a previous case, the Tribunal held that post-amendment, the products would be classified under Chapter 48. Consequently, the Tribunal directed the appellant to make a pre-deposit of Rs. 18 lakhs within six weeks, with the balance of dues and penalties waived upon compliance, and recovery stayed during the appeal's pendency. 5. Final Directions: The Tribunal ordered the appeal to be tagged with other related appeals for the final hearing, emphasizing the need for the appellant to comply with the pre-deposit requirement by a specified date to benefit from the waiver of dues and penalties during the appeal process.
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