2000 (12) TMI 173 - AT - Central Excise

Summary

Issues: Classification of "printed trade advertising material" under Heading 49.01 or 94.05, imposition of penalties, and limitation arguments.

Classification Issue:
The Appellate Tribunal considered the classification of "printed trade advertising material" in the appeals. The manufacturer claimed the goods should be classified under Heading 49.01, while the department argued for classification under Heading 94.05. The goods in question were described as sheets of vinyl with printed pictures and slogans used for advertising. The Commissioner outlined the manufacturing process involving digital printing on electrostatic paper and transferring the design to the final product. The manufacturer argued that since the goods were products of the printing industry, they should be classified under Heading 49.01. The Commissioner agreed, stating that the goods were products of the printing industry and not under Heading 94.05, as they were included elsewhere in the tariff. The Tribunal concurred with this analysis, emphasizing that the goods were products of the printing industry and, therefore, not classifiable under Heading 94.05.

Penalties Imposition Issue:
Penalties were imposed on the manufacturer and its director for the demand of duty on the goods. However, since the Tribunal found that the goods fell under Heading 49.01 and were not subject to duty, the imposition of penalties was deemed unwarranted. The Tribunal allowed both appeals and set aside the impugned order, providing consequential relief as permitted by law.

Limitation Arguments Issue:
The Tribunal did not delve into the arguments on limitation due to its finding on the classification issue. As the goods were classified under Heading 49.01, which had a nil rate of duty, the question of duty leviability did not arise. Consequently, no penalty could be imposed on either of the appellants. The appeals were allowed, and the impugned order was set aside, granting relief to the appellants.