1997 (3) TMI 227 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 61/88 regarding exemption for paper used in printing books.
2. Classification of children's colouring books as books of general interest.
3. Consideration of children's drawing books as books of general interest.

Analysis:
1. The appeal concerns the interpretation of Notification No. 61/88, which provides an exemption for specified paper used in printing books. The lower authority denied the exemption to colouring books, stating that they do not qualify as books of general interest. The appellants argued that children's books, including colouring books, should be considered books of general interest. The Central Board of Excise and Customs' tariff advice defines books of general interest as those not limited to a small group of specialists. The Tribunal noted that the Central Excise Tariff includes various types of books, including picture books for children. The Tribunal held that children's books, including colouring books, can be considered books of general interest, thus entitling them to the exemption under Notification No. 61/88.

2. The Tribunal examined the scope of children's picture, drawing, or colouring books under Chapter 49.03 of the Central Excise Tariff. This category includes books compiled for children's interest or education, where pictures are the principal focus. The Tribunal emphasized that children's drawing books are also considered books and should not be excluded as books of general interest solely based on their target audience. The Tribunal clarified that books of general interest can cater to specific populations and need not have universal readership. Therefore, the Tribunal concluded that children's drawing books should be considered books of general interest, making them eligible for the benefits under Notification No. 61/88.

3. In summary, the Tribunal ruled in favor of the appellants, allowing the appeal and granting them the benefit of Notification No. 61/88 for both colouring books and drawing books intended for children. The Tribunal's decision was based on the understanding that children's books, including colouring and drawing books, can be classified as books of general interest, as they cater to a specific segment of the population and serve educational or entertainment purposes. The Tribunal directed that consequential relief be provided to the appellants in accordance with this decision.