2018 (1) TMI 682 - AT - Central Excise

Classification of goods - computer stationery and paper rolls - whether fall under Chapter 48 or Chapter 49 of the schedule to Central Excise Tariff Act, 1985? - Held that - the subject item is more of a product of printing industry as the leaflets/receipts attains the usable form only after printing. To make it more elaborate, it is not merely the paper or stationery but the printing on it that gives it the worth, hence the subject item reflects more a member of Chapter 49, family compared to chapter 48. Clarification issued by Chief Commissioner of Customs, Central Excise and Service Tax, Lucknow vide his communication No.V(30)CCO/LKO/Tech/12/2010/705 dated 12/02/2010 and Board s Circular No.11/91-CX. 4 dated 15.10.1991, clarified that the entry of Chapter Heading 4820 reveals that it does not cover printed sheets, used for some specified purpose. Appeal dismissed - decided against Revenue.

Summary

Issues: Classification of items manufactured by the respondents under Chapter 48 or Chapter 49 of the Central Excise Tariff Act, 1985.

Analysis:
The appeals filed by the Revenue questioned the classification of items manufactured by the respondents, specifically computer stationery and paper rolls, under Chapter 48 or Chapter 49 of the Central Excise Tariff Act, 1985. The Commissioner (Appeals) relied on various declarations and circulars to determine the classification. The Commissioner classified certain items like blank FDR's, pre-printed railway tickets, dividend warrants, LIC payment receipts, and policy certificates/bonds as documents of title with fiduciary value, falling under Chapter 49. However, items like Computer Stationery with logo, pre-printed EZR and invoices were classified under Chapter 48. The appeals raised concerns about the lack of reasoning for the change in classification from chapter 42 and 49 to Chapter 48 and 49.

Upon hearing the parties, the Tribunal considered the issue in light of a clarification issued by the Chief Commissioner of Customs, Central Excise, and Service Tax. The clarification highlighted that the subject receipts were printed separate sheets used for specific purposes, falling under Chapter 49 which exclusively covers leaflets and similar matter. The Chief Commissioner emphasized that the printed carbon leaflets, being a product of the printing industry, belonged to Chapter 49 due to the value added by printing. The Chief Commissioner also noted that similar products were classified under Chapter 49 in other Commissionerates across the country.

Based on the clarification provided by the Chief Commissioner, the Tribunal concluded that the issue was no longer open to debate and upheld the classification of the items by the Commissioner (Appeals). Consequently, the appeals filed by the Revenue were dismissed, and the Order-in-Appeal was confirmed. The respondents were granted consequential benefits as per the law.