2005 (3) TMI 237 - AT - Central Excise

Summary

Issues:
Classification of printed metal advertisement posters under Heading 4901.90 of the CET or as printed advertising sign boards under Heading 83.10 of the CET.

Analysis:

1. Classification Issue:
The appellants argued that their printed metal advertisement posters should be classified under Heading 4901.90 based on Chapter Note 5 of the HSN, emphasizing the dominant role of advertising. They claimed exemption under Notification 13/92 (N.T.) and had obtained necessary approvals. The dispute arose when Preventive Officers alleged misdeclaration, leading to duty demands and penalties imposed by the Commissioner. The main contention was whether the product was correctly classified as an advertisement poster or as an advertising sign board under Heading 83.10.

2. Tribunal's Findings:
The Tribunal found that the impugned Order-in-Original lacked logical reasoning for classifying the product as a sign board instead of an advertisement poster. It noted that the HSN clearly included advertising matter under Heading 4911.10, corresponding to Heading 4901.90 of the CET, while Heading 83.10 covered sign plates, excluding the appellants' product. The Tribunal emphasized that all printing for advertising purposes cannot be limited to sign boards, citing relevant case laws to support the classification under Chapter 49.

3. Reasoning and Rejection of Allegations:
The Tribunal rejected the department's claim that the product fell under advertising sign plates of Heading 83.10, emphasizing that an advertisement poster serves a different purpose than a sign board. The adjudicator's reasoning was deemed illogical as the primary function of the printed metal advertisement posters was advertising, aligning with the HSN classification. Additionally, the plea of time bar was dismissed due to full disclosures made by the appellants, leading to the appeal's allowance on grounds of limitation.

4. Conclusion:
Ultimately, the Tribunal set aside the duty demands, penalties under Section 11AC, and interest under Section 11AB, as the classification under Heading 83.10 was deemed incorrect. The order was overturned, and the appeal was allowed based on the correct classification of the printed metal advertisement posters under Heading 4901.90.