2018 (5) TMI 394 - AT - Central Excise

Classification of goods - printed computer stationery - Department was of the view that printed computer stationery falls under Chapter Heading 48.20 attracting duty while the appellant classified the said goods under Chapter Heading 49 to hold that the goods are not chargeable to duty - Held that - An identical issue was considered by the Tribunal in the case of Data Processing Forms Pvt. Ltd. 2011 (9) TMI 921 - CESTAT AHMEDABAD wherein the forms have been scanned and made part of the said judgment, it was held in the case that the products in the current appeal would definitely fall under category of product of printing industry and gets classified under Chapter 49 of the second Schedule of Customs Excise Tariff Act, 1985, as the pre-printed forms contain motifs, characters or pictorial representations which are not merely incidental to the primary use of the product. The impugned items do not fall under Chapter 48.20 but would only fall under Chapter 49 - Demand do not sustain - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of printed computer stationery under Chapter Heading 48.20 or Chapter Heading 49.01 of CETA, 1985.

Analysis:
The appellants were manufacturing printed computer stationery without registering with the Central Excise Department, leading to a dispute on the classification of the goods. The Department contended that the goods fell under Chapter Heading 48.20, attracting duty, while the appellants argued for classification under Chapter Heading 49.01 to avoid duty charges. Two show cause notices were issued, and the Commissioner confirmed the classification under CH 48.20, demanding duty, interest, and penalties. The appellants appealed to the Tribunal, claiming their belief in the goods' classification under Chapter 49.01.

During the hearing, the appellants' counsel presented various printed stationery items, arguing that each item was specifically designed for a particular customer's use, falling under Chapter Heading 49. The appellants had sought clarification from the authorities through letters, which remained unanswered until an officer advised duty payment in 2007. The Tribunal referred to a previous case and Supreme Court decision affirming a similar issue, applying the precedent to the present case. The Tribunal distinguished a decision relied upon by the Department, emphasizing the essential nature and use of printed matter for classification.

After examining the samples of the printed documents, the Tribunal concluded that the impugned items were similar to those in the referenced case, thus classifying them under Chapter Heading 49.01. Citing relevant HSN notes, the Tribunal highlighted that if the printing on the goods conveys a message or is not merely incidental to their primary use, they fall under Chapter 49. Consequently, the demand for duty under Chapter Heading 48.20 was set aside, and the appeals were allowed in favor of the appellants.