2015 (3) TMI 1439 - AT - Central Excise

Classification of goods - Printed Paper Labels - classifiable under 4818.90 and were exempted vide Sr. No. 13 of Notification No. 228/86-C.E., dated 3-4-1986 or not - HELD THAT - Printed paper labels classification was not under dispute and the said entry is chargeable to NIL rate of duty under Notification No. 228/86, dated 3-4-1986. In the appeal Hon ble Supreme Court in 1997 (7) TMI 138 - SUPREME COURT has held that in addition to the other type of labels, printing paper label is product of printing industry and therefore chargeable to NIL rate of duty. The said product is therefore not chargeable to duty. The appeal filed by the Revenue is dismissed.

Summary

Issues: Classification and duty dispute regarding Printed Paper Labels

In this case, the Appellate Tribunal CESTAT MUMBAI heard an appeal filed by the Revenue against an order passed by the Commissioner (Appeals) concerning the classification and duty dispute related to Printed Cloth Label, Aluminium Foil Label, Plastic Film Label, and Printed Paper Label. The dispute arose when the Hon’ble Supreme Court allowed the appeal of the respondent-assessee, holding that these items, including Printed Paper Labels, are eligible for exemption as products of the ‘Printing Industry’. The original authority dropped the demands based on this decision. The Revenue specifically appealed against the order regarding Printed Paper Labels. The Commissioner (Appeals) dismissed the Revenue's appeal, stating that the Printed Paper Labels were covered by the Hon’ble Supreme Court judgment.

Regarding the Printed Paper Labels, the respondent's counsel argued that there was no dispute about their classification, as they were classifiable under 4818.90 and exempted under Notification No. 228/86-C.E. The counsel further emphasized that the Hon’ble Supreme Court had considered all four items as products of the printing industry, making them eligible for a NIL rate of duty. The counsel pointed out that even without this consideration, Printed Paper Labels were chargeable to a NIL rate of duty under the mentioned notifications.

The Appellate Tribunal reviewed the grounds of appeal and the Supreme Court's order. It was noted that the classification of Printed Paper Labels was not in dispute and that they were chargeable to a NIL rate of duty under Notification No. 228/86. The Supreme Court had determined that Printed Paper Labels, along with other types of labels, were products of the printing industry and thus not subject to duty. Consequently, the appeal filed by the Revenue was dismissed based on these findings.