2018 (3) TMI 60 - AT - Central Excise

Classification of goods - Printed Plastic Cards - whether classified under Chapter 39 or Chapter 49? - Board Circular No.141/52/95 - CX dt. 14.08.95 - Held that - the impugned goods are printed plastic cards having printed matter as per the requirement of customer. The sample produced before us also to the same effect and further there is no dispute about the identity of the cards. In such case when it is not a plain card, it shall be governed by Section Note 2 of Section VII to the Central Excise Tariff - The Hon ble Apex Court judgment in case of Metagraphics Pvt. Ltd. v. CCE, Bombay - 1996 (88) ELT 630 (SC) and Tribunal s judgment in case of Bharat Metal Decorators - 2005 (185) ELT 397 (TRI), Sai Security Printers Ltd. 2006 (199) ELT 121 and CCE, Aurangabad v. Adhunik Plastic Inds. 1998 (1) TMI 129 - CEGAT, NEW DELHI are absolutely applicable in the given controversy. In all the aforesaid cases the products coming into existence were held to be printing industry products. The impugned products are classifiable under chapter sub heading 4901.90 and the demand made under chapter sub heading 39 is not sustainable - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of printed plastic cards under the Central Excise Tariff.

Analysis:
1. Facts and Allegations: The Appellants were engaged in manufacturing "Printed Plastic Cards" and classified them under chapter subheading 4901.90, claiming a Nil rate of duty. However, a show cause notice was issued, alleging that prior to 1998, the goods were classified under a different subheading and that the current classification was incorrect due to the absence of certain features like holograms or emblems.

2. Appellant's Arguments: The Appellant's counsel argued that the printed plastic cards obtained a distinct character after printing, making them products of the printing industry. They relied on Section Note 2 of Section VII and a Board Circular to support their classification under chapter 49. Several judgments were cited to strengthen their position.

3. Revenue's Submission: The Assistant Commissioner for the revenue contended that the goods did not fall under the description in the Tariff entry and that a previous judgment cited by the Appellant was not applicable due to changes in the tariff entry.

4. Tribunal's Findings: After hearing both sides and examining the evidence, the Tribunal found that the printed plastic cards, tailored to customer specifications, were not plain cards but products of the printing industry. Referring to Section Note 2 of Section VII, the Tribunal concluded that such goods, when printed with motifs or characters not incidental to their primary use, should be classified under chapter 49. The Tribunal relied on various judicial precedents supporting the classification of similar products as printing industry goods.

5. Decision: Based on the established legal principles and precedents, the Tribunal held that the printed plastic cards should be classified under chapter subheading 4901.90, rejecting the revenue's demand for a different classification under chapter 39. The Tribunal did not delve into other issues like time bar, and allowed the appeal, setting aside the impugned order.

6. Conclusion: The Tribunal's decision, delivered on 11/01/2018, upheld the Appellant's classification of the printed plastic cards under chapter subheading 4901.90, emphasizing the distinct nature of the products as creations of the printing industry and citing relevant legal precedents to support its ruling.