2018 (1) TMI 523 - AT - Central Excise

Classification of goods - printing of various materials on orders like letter head, certificates, diaries, registers labels, answer sheets, envelopes, calendars etc - Held that - The goods which have been manufactured by the appellant are in the nature of labels, envelopes, answer copies etc. Such goods, even though printed, are intended for further use by way of printing or writing - in the light of Chapter Note 14, such goods will remain classified under Chapter 48 inspite of printing which can further use for writing. It is also seen that printing which is carried out by the appellant is merely incidental to the primary use of the goods. Consequently, the goods manufactured by the appellant will continue to remain classified under Chapter 48 from the date, Chapter note 14 has been inserted. The demand has been confirmed only for the period after the insertion of Note 14 to Chapter 49. Appeal dismissed - decided against appellant.

Summary

Issues:
Classification of goods under Chapter 48 post-amendment - Applicability of Chapter Note 14

Analysis:
The appeal was filed against Order-in-Original No. 14/2015 dated 29.02.2016, concerning a dispute from 2012 to 2014. The appellant was engaged in printing various materials based on orders received from different sources. Initially, the appellant enjoyed exemption under chapter heading 49 of the Central Excise Tariff Act, 1985. However, an amendment was made by the Finance Act, 2012, which inserted Chapter Note 14 under Chapter 48, affecting the classification of printed paper and paper products. The Department brought the items under Chapter 48, leading to the appellant's grievance and subsequent appeal.

During the proceedings, the appellant's counsel referred to previous decisions and a specific case involving Railway stationery to support the claim. However, the Department argued that further writing or printing was necessary on the items supplied by the appellant, such as bills and sheets. The Tribunal noted that Chapter Note 14 stipulates that if paper products are printed with specific elements and intended for further printing or writing, they shall remain classified under the recipient heading. The goods manufactured by the appellant, including labels, envelopes, and answer copies, were deemed to be intended for further use through printing or writing, as the printing was incidental to the primary use of the goods.

Based on the analysis of the arguments and the relevant legal provisions, the Tribunal upheld the impugned order, stating that the goods would continue to be classified under Chapter 48 post-amendment. The demand was confirmed only for the period after the insertion of Note 14 to Chapter 49. Consequently, the appeal filed by the appellant was dismissed, and the impugned order was upheld.