2017 (11) TMI 812 - AT - Central Excise

Classification of manufactured goods - job-work - respondents were of the view that their finished products fell under chapter 49, wherein the goods are not dutiable - Held that - In the instant case, the subject receipts are nothing but the printed separate sheets, running in length, used by specific customer (Sahara) for a specified purpose - the very basis of the show-cause-notice that the finished products manufactured by the respondents are classifiable under Chapter 48 no longer exists - the order of the Ld. Commissioner (Appeals) impugned herein is correct and requires no interference - appeal dismissed - decided against Revenue.

Summary

Issues involved:
Classification of finished goods for duty payment under Chapter 48 or Chapter 49.

Analysis:
The appeal was filed by the Revenue against the Order-in-Appeal passed by the Commissioner of Central Excise & Customs (Appeals), Kanpur. The issue revolved around the classification of finished goods manufactured on job work basis for a specific customer and cleared on payment of duty at 8%. The respondents believed their products fell under Chapter 49, which is non-dutiable. Subsequently, the Chief Commissioner clarified that the products were more aligned with Chapter 49 as they were printed carbon leaflets used for a specific purpose by the customer. The Chief Commissioner highlighted that the printing on the product gave it value, making it a member of Chapter 49 rather than Chapter 48. The Commissioner of Customs, Central Excise Kanpur also confirmed the classification under Chapter Heading 4901 for the finished products. The Commissioner (Appeals) had previously ruled in favor of the assessee in a similar case. After considering the contentions and the clarification by the Chief Commissioner, it was concluded that the basis of the show-cause-notice for classification under Chapter 48 was no longer valid. Therefore, the order of the Commissioner (Appeals) was upheld, dismissing the Revenue's appeals and entitling the respondents to consequential benefits as per the law.