2017 (8) TMI 991 - AT - Central Excise

Classification of goods - Manifold Business Forms & Interleaved Carbon Papers - whether classified under CTH 48 or CTH 49? - Held that - following the classification by the learned Chief Commissioner office, the Commissioner of Customs, Central excise Kanpur vide communication dated 9th March, 2010 clarified to the respondent-assessee that in respect of the finished products manufactured by them namely money receipts for Sahara Parivar - Interleaved with Carbon was classifiable under Chapter Heading 4901 - appeal dismissed - decided against Revenue.

Summary

Issues:
Classification of finished products under Chapter Heading 4820 or Chapter Heading 49

Analysis:
The appeal in this case revolved around the classification of the finished products manufactured by the respondents. The show cause notice alleged that the products fell under Chapter Heading No. 4820 40 00 of CETA, 1985, while the respondents argued that they should be classified under Chapter 49, which would make the goods non-dutiable. The Chief Commissioner of Customs, Central Excise, and Service Tax clarified that the products in question, namely money receipts for Sahara Parivar interleaved with carbon, should be classified under Chapter Heading 4901. This classification was supported by a communication from the Commissioner of Customs, Central Excise Kanpur, and an order of the Commissioner (Appeals) in the assessee's own case. The Chief Commissioner emphasized that the subject receipts were more akin to printed carbon leaflets falling under Chapter 49, as they gained value through printing, making them a product of the printing industry rather than mere stationery. The Tribunal, after considering the rival contentions and the clarification by the Chief Commissioner, concluded that the basis of the show cause notice, which classified the products under Chapter 48, was no longer valid. Therefore, the Tribunal upheld the order of the Commissioner (Appeals) and dismissed the appeals of the Revenue, allowing the respondents to claim consequential benefits in accordance with the law.

This judgment highlights the importance of correctly classifying goods under the appropriate tariff headings to determine their dutiability. The decision was based on a thorough analysis of the nature of the products in question and the relevant tariff classifications provided by the Chief Commissioner and other authorities. The Tribunal's decision to uphold the classification under Chapter 49, as opposed to Chapter 48, showcases the significance of understanding the specific characteristics and uses of goods in the context of tariff classifications. The ruling provides clarity on the classification of similar products in the printing industry and sets a precedent for future cases involving the classification of printed materials.