1997 (3) TMI 230 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 61/88 regarding exemption for specific types of paper.
2. Classification of children's coloring books as books of general interest.
3. Scope of the term "books" under Central Excise Tariff.
4. Application of Notification No. 61/88 to children's picture, drawing, or coloring books.

Analysis:
1. The appeal concerns the interpretation of Notification No. 61/88, which provides an exemption for certain types of paper used for printing text and general interest books. The lower authority denied the exemption to coloring books, stating they do not hold general interest but are only of interest to young children. However, the appellant argued that children's books, including coloring books, should be considered books of general interest as they target a specific population group and are not limited to specialists.

2. The Advocate for the appellant highlighted that the lower authority misdirected himself by categorizing children's books, like coloring books, as not being of general interest. He argued that there is no clear definition of books of general interest in the notification but referenced the Central Board of Excise and Customs' tariff advice, which defines such books as those not limited to a small group of specialists. The Advocate contended that children's books are intended for the general interest of children and should be considered as books of general interest eligible for the exemption under Notification No. 61/88.

3. The Tribunal examined the scope of the term "books" under the Central Excise Tariff, noting that books printed under Section 49 encompass various forms of printing methods. Specifically, under heading 49.03, children's picture, drawing, or coloring books are included. The Tribunal referred to the Harmonized System of Nomenclature (HSN) to elaborate on the scope of this category, emphasizing that these books are compiled for children's interest or education, with pictures being the principal focus. The Tribunal clarified that drawing books are also considered books, and the central issue was whether these books are of general interest.

4. After considering both sides' arguments, the Tribunal held that children's books, including coloring books, can be classified as books of general interest. The Tribunal differentiated books of general interest from those targeting specialists, stating that books for children can be deemed as books of general interest. Consequently, the Tribunal allowed the appeal, granting the benefit of Notification No. 61/88 to the books considered as books of general interest. The decision emphasized that the exemption should apply to these specific types of books, providing consequential relief accordingly.