2018 (4) TMI 54 - AT - Central Excise

Classification of goods - Continuous computer stationery in the form of Carbon Leaflet/Money Receipts - validity of SCN - Held that - subject item reflects more a member of Chapter 49, family compared to Chapter 48. - the very basis of the SCN 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:
Classification of finished goods under Chapter 48 or Chapter 49.

Analysis:
The appeals were filed by the Revenue against an Order-in-Appeal passed by the Commissioner (Appeals), Customs & Central Excise, Kanpur. The main issue was the classification of finished goods manufactured on job work basis for a specific customer under Chapter 48 or Chapter 49 of the tariff. The Revenue argued that the goods were dutiable at 8%, while the respondents contended that the goods fell under Chapter 49 and were not dutiable. The Chief Commissioner of Customs, Central Excise, and Service Tax, Lucknow, clarified that the finished products, namely money receipts interleaved with carbon, were classifiable under Chapter Heading 4901. This clarification was based on the fact that the printed carbon leaflets were considered products of the printing industry and fell under Chapter 49. The Commissioner of Customs, Central Excise, Kanpur also confirmed this classification in a communication to the respondent-assessee. The order of the Commissioner (Appeals) in the assessee's own case had also previously held that the goods manufactured were covered under Chapter 49.

After considering the contentions of both parties and the clarification by the Chief Commissioner, the Tribunal found that the basis of the show-cause notice, which classified the finished products under Chapter 48, was no longer valid.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. The respondents were deemed entitled to consequential benefits as per the law. The judgment was pronounced in court by the Tribunal.