2016 (9) TMI 323 - HC - Central Excise

Classification - text books and printed work text books - whether to be classified under Chapter 49 of the Central Excise Tariff Act as per petitioner or to be classified under Chapter 48 (4820) as per Revenue - Held that - the matter assumes some criticality and importance having regard to the use of the work books (which has sought to be treated as exercise books), i.e., education. In case the classification of these articles is in SH4820, the manufacturers/printers would have to pay duty which would be collected ultimately from the consumers, i.e., the students. In these circumstances, we hereby direct the CBEC to consider all aspects of the matter. The petitioner shall furnish relevant details and particulars including a sample or samples of the work book/product in question within two weeks to the CBEC. The CBEC shall thereafter examine the matter and pass appropriate order at its earliest convenience. - Petition disposed of

Summary

Issues:
Classification of text books and printed work text books under the Central Excise Tariff Act.

Analysis:
The petition raises a controversy regarding the classification of text books and printed work text books under the Central Excise Tariff Act. The petitioner argues that these products should be classified under Chapter 49, while the respondents assert that they should be classified as exercise books under Chapter 48. The petitioner highlights the usage of these work books in education and the conflicting classification practices among different Commissionerates. The All India Federation of Master Printers supports the petitioner's stance, emphasizing that the prevalent understanding is to classify these products under Chapter 49 to avoid excise duty. The respondents argue that more information about the content of the work books is needed before determining the appropriate classification.

The Court acknowledges the significance of the matter, particularly concerning the impact on education if the products are classified as exercise books. It notes that any duty imposed on manufacturers/printers would ultimately be passed on to the consumers, i.e., the students. Given the potential consequences, the Court directs the Central Board of Excise and Customs (CBEC) to thoroughly review the issue. The petitioner is instructed to provide relevant details and samples of the work book/product in question to the CBEC within two weeks. The CBEC is then tasked with examining the matter and issuing an appropriate order promptly.

Therefore, the Court disposes of the petition with the above directions, emphasizing the need for the CBEC to consider all aspects of the classification issue and make a well-informed decision.