1997 (3) TMI 228 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 61/88 regarding the benefit for specified paper used in printing books.
2. Classification of children's colouring books as books of general interest.
3. Determination of whether children's books can be considered books of general interest.
4. Application of Central Excise Tariff Chapter 49 on books.
5. Consideration of children's picture, drawing, or colouring books under Chapter 49.03 of the Central Excise Tariff.

Analysis:

1. The appeal in this case revolves around the interpretation of Notification No. 61/88 concerning the benefit available for specific paper used in printing books. The lower authority denied the exemption to colouring books, stating they do not qualify as books of general interest. However, the appellants argued that children's books, including colouring books, should be considered books of general interest, as they are not limited to a small group of specialists.

2. The advocate for the appellants highlighted that the lower authority misdirected himself by categorizing children's books, such as colouring books, as not being of general interest. He argued that the definition of books of general interest is not explicitly provided in the notification, but according to the tariff advice of the Central Board of Excise and Customs, books of general interest are those with broad appeal, not limited to specialists. Therefore, children's books, intended for the general interest of children, should be considered as books of general interest eligible for the exemption under Notification 61/88.

3. The Judicial Member adopted the reasoning of the lower authority, while the appellants contended that children's books, including colouring books, should be deemed books of general interest based on their appeal to a wide audience, particularly children. The Tribunal considered the scope of the term "books" under Chapter 49 of the Central Excise Tariff, noting that children's picture, drawing, or colouring books fall under heading 49.03. This category includes books compiled for children's interest or education, with pictures as the primary focus, not subsidiary to the text.

4. The Tribunal examined the definition of children's picture, drawing, or colouring books under heading 49.03 of the Central Excise Tariff, emphasizing that these books are intended for children's interest, amusement, or primary education. The Tribunal clarified that books of general interest are not limited to specialist readers but can cater to specific segments of the population. In this case, children's books, including colouring books, were deemed books of general interest, making them eligible for the benefit under Notification 61/88. Consequently, the appeal of the appellants was allowed, and they were granted relief accordingly.