1997 (3) TMI 226 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 61/88 regarding exemption for specific paper used for printing books.
2. Determination of whether children's coloring books qualify as books of general interest.
3. Analysis of the definition of books of general interest under the Central Excise Tariff.
4. Consideration of whether children's drawing books fall under the category of books of general interest.

Analysis:
1. The appeal concerns the interpretation of Notification No. 61/88, which provides an exemption for specific paper used for printing books. The lower authority denied the exemption to coloring books, stating they do not hold general interest and are primarily for children's entertainment. However, the appellant argued that children's books can be considered books of general interest, as they target a specific population group and are not limited to specialists. The Tribunal noted that the Central Excise Tariff includes various types of books, including picture books for children, under Chapter 49.03.

2. The Tribunal examined the scope of children's picture, drawing, or coloring books under heading 49.03 of the Central Excise Tariff. According to the HSN, these books are compiled for children's interest or amusement, with pictures as the principal focus. The heading includes pictorial alphabet books and episodal picture books. The Tribunal emphasized that drawing books are also considered books and clarified that the issue was whether these books are of general interest, not whether they qualify as books.

3. The Tribunal considered the distinction between books of general interest and those for specialists as per the Board's clarification. Books of general interest may have universal readership or target specific populations. The Tribunal held that children's books, including coloring and drawing books, can be classified as books of general interest. Therefore, the benefit of Notification 61/88 should apply to these books, overturning the lower authority's decision. The Tribunal directed that consequential relief be granted to the appellants accordingly.

4. In conclusion, the Tribunal's judgment focused on interpreting the scope of books under the Central Excise Tariff, specifically children's picture, drawing, and coloring books. It clarified that these books can be considered books of general interest, entitling them to the benefits of Notification No. 61/88. The decision highlights the importance of understanding the nature and target audience of books when determining their eligibility for exemptions under relevant notifications.