2001 (3) TMI 149 - AT - Central Excise

Summary

Issues:
Classification of translucent plastic sheets used for advertising products under the Tariff.

Analysis:
The case involved the classification of translucent plastic sheets used for advertising products under the Tariff. The appellant printed graphics and texts on these sheets using screen-printing and returned them to customers for use in illuminated signs. The Commissioner classified the product as part of illuminated signs under Heading 94.05 of the Tariff. However, the Tribunal referred to a previous case where it was held that such sheets should be classified under Heading 49.01 as a product of the printing industry, not under Heading 94.05 for illuminated signs. The Tribunal noted that the printing process by the appellant was different from the previous case and confirmed that the printing was done by means of screen-printing.

The Commissioner's reasoning for rejecting the appellant's classification was based on the unique function of the printed sheets, which were of high glossy nature and provided a photographic effect when printed on. The Commissioner argued that these sheets were essential for illuminated sign boxes and constituted a distinct item for advertising mediums. However, the Tribunal disagreed with this logic. While acknowledging the importance of the plastic sheets in advertising signs, the Tribunal emphasized that the process of printing alone does not transform the sheets into signs. The sheets need to be placed in a frame, illuminated, and displayed for the intended effect. The Tribunal held that the classification under Chapter 49 for printed sheets was appropriate, rejecting the Commissioner's classification under Heading 94.05.

In conclusion, the Tribunal allowed the appeal and set aside the impugned order, holding that the translucent plastic sheets used for advertising products should be classified under Chapter 49 as a product of the printing industry, not under Heading 94.05 for illuminated signs.