1997 (3) TMI 231 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 61/88 for exemption on paper used for printing books, specifically coloring books. Whether coloring books for children qualify as books of general interest.

Analysis:
The appeal concerned the interpretation of Notification No. 61/88 regarding the exemption available for paper used in printing books, particularly coloring books. The lower authority had denied the exemption, stating that coloring books for children did not qualify as books of general interest. The lower authority's decision was based on the notion that books of general interest should hold appeal for all sections of a literate society. However, the appellant argued that children's books, including coloring books, should be considered books of general interest as they are intended for the general interest of children and not a small group of specialists.

The Central Board of Excise and Customs' tariff advice was referenced, which defined books of general interest as those not limited in appeal to a small group of specialists. The appellant contended that children's books, although targeted to a specific population group, should still be considered general books. The appellant emphasized that if coloring books were deemed books of general interest, other points raised by them would become irrelevant.

The Judicial Member adopted the reasoning of the lower authority, while the Vice President and the other Member analyzed the issue further. They observed that books, including picture books, fell under Chapter 49 of the Central Excise Tariff. The HSN classification specified that children's picture, drawing, or coloring books were compiled for children's interest or amusement and were included under heading 49.03. The heading clarified that such books were intended for children's primary education and should primarily consist of pictures, not text. The judgment highlighted that the definition of books of general interest should be distinguished from books for specialists, and books targeted at specific populations could still qualify as general interest books.

Ultimately, the Tribunal held that children's books, including coloring books, could be considered books of general interest. Therefore, the benefit of Notification No. 61/88 was deemed applicable to the books in question. The appeal of the appellants was allowed, and consequential relief was directed to be granted accordingly.