1988 (2) TMI 173 - AT - Central Excise

Summary

Issues:
- Classification of printed wrappers as products of the printing industry or packaging industry for the purpose of duty exemption under Notification No. 122/75-C.E., dated 5-5-1975.

Analysis:
The appeal before the Appellate Tribunal CEGAT, New Delhi involved a dispute regarding the classification of printed wrappers as products of the printing industry or packaging industry for the purpose of duty exemption under Notification No. 122/75-C.E., dated 5-5-1975. The Collector (Appeals) had previously held that printed wrappers are products of the printing industry and are exempt from duty. The department, however, contended that since the main function of the wrappers is packing, they should be considered products of the packaging industry. The department relied on previous decisions, including the case of Golden Press v. Dy. Collector of Central Excise, Hyderabad, to support their argument.

The respondent, represented by an advocate, argued that the predominant activity in the manufacture of the printed wrappers is printing, emphasizing that the main purpose of the wrappers is to provide information related to the goods, manufacturer, brand name, and ingredients used, rather than just packaging. The advocate cited the views of Member (Judicial) in the R.M.D.C. Press (P) Ltd. case to support this position. The Tribunal carefully considered the evidence and submissions from both sides. They noted that the Collector was influenced by substantial evidence presented by the appellants, including references from a book on packaging and recognition of excellence in printing and design by various authorities. The Tribunal agreed with the Collector's conclusion that printed wrappers are products of the printing industry, not the packaging industry.

Moreover, the Tribunal highlighted that previous decisions concerning printed cartons or cardboard boxes are not directly applicable to printed wrappers. They referenced decisions from the High Courts of Andhra Pradesh and Karnataka, as well as their own previous ruling, to assert that even printed cartons are considered products of the printing industry, not packaging. Therefore, the Tribunal dismissed the appeal, affirming that printed wrappers are products of the printing industry and not the packaging industry, thus upholding the duty exemption under Notification No. 122/75-C.E., dated 5-5-1975.