2016 (10) TMI 39 - AT - Central Excise

Classification - printed Sheets of paper/paper board - whether to be classified under CETH 4901.90/4911 99 90 as per respondent or under CETH 4819 by the Revenue - Held that - the representative samples have been examined by the Commissioner (Appeals). He recorded that the sample sheets having printed logo of the contracting customers are not perferated groomed or cut to shape and size and therefore it could be said that this sheet to be used as printed cartons has to pass through more processes and this point has not been disputed by the Department. Therefore we find no valid reason to interfere with the said order. - Decided against the Revenue

Summary

Issues Involved:
Classification of printed sheets of paper/paper board for central excise purposes under CETH 4901 or CETH 4819.

Detailed Analysis:
1. Issue of Correct Classification: The main issue in this case revolves around the correct classification of printed sheets of paper/paper board for central excise purposes. The respondent claimed classification under CETH 4901.90/4911 99 90, while the Revenue argued for classification under CETH 4819. The former classification pertains to products of the printing industry, while the latter deals with cartons, whether assembled or unassembled.

2. Revenue's Contention: The Revenue contended that in trade, a carton remains a carton regardless of whether it is plain or printed. They argued that the respondents were producing printed containers in unassembled condition meant for wrapping or packing material, falling under 4819 classification.

3. Commissioner (Appeals) Decision: The Commissioner (Appeals) reviewed the case and concluded that the printed sheets of paper or paper board should be classified under chapter heading 4901, chargeable to a Nil rate of duty, not as printed cartons under heading 4819. The Commissioner emphasized that the printing on paper sheets indicated the nature of the goods to be contained, absolving the appellants of misdeclaration charges.

4. Analysis of Impugned Order: The impugned order highlighted that the printed sheets examined were not perforated, grooved, or cut to size, indicating they were not yet in the form of printed cartons. The Commissioner considered various decided cases on similar facts before reaching a decision, emphasizing the need for the sheets to undergo further processes to become printed cartons.

5. Appellate Tribunal Decision: After considering the grounds of appeal and the impugned order, the Appellate Tribunal found no valid reason to interfere with the Commissioner's decision. Consequently, the appeal by the Revenue was rejected, affirming the classification of printed sheets under CETH 4901 and the absolution of the appellants from misdeclaration charges.

In conclusion, the judgment upheld the classification of printed sheets of paper/paper board under CETH 4901 for central excise purposes, based on the nature of the goods and the absence of characteristics required for classification as printed cartons under CETH 4819.