1997 (3) TMI 232 - AT - Central Excise

Summary

Issues:
1. Interpretation of Notification No. 61/88 regarding the classification of books as books of general interest.
2. Determination of whether children's colouring books qualify as books of general interest for the purpose of exemption under the notification.

Analysis:
1. The appeal before the Appellate Tribunal CEGAT, Madras involved the interpretation of Notification No. 61/88 concerning the classification of books as books of general interest eligible for exemption. The lower authority denied the exemption to colouring books, stating that they did not hold general interest and were primarily for children's entertainment. The Tribunal considered the definition of books of general interest as per the Central Board of Excise and Customs, emphasizing that such books should not be limited to a small group of specialists. The Tribunal held that children's books, including colouring books, intended for the general interest of children could be considered books of general interest, thereby qualifying for the exemption under the notification.

2. The appellant's advocate argued that the lower authority misdirected itself by categorizing children's books, including colouring books, as not books of general interest. The advocate highlighted that the lower authority acknowledged the absence of a specific definition for books of general interest and referred to the tariff advice indicating that such books should have broad appeal beyond a small group of specialists. The advocate contended that children's books, even if targeted to a specific population group like children, could still be considered books of general interest. Therefore, the advocate asserted that the benefit of Notification 61/88 should have been granted to the colouring books. The Tribunal agreed with the appellant's argument, emphasizing that children's books, including drawing and colouring books, could be classified as books of general interest, making them eligible for the exemption under the notification.

3. The Judicial Member of the Tribunal adopted the reasoning of the lower authority, while the Vice President, delivering the order, analyzed the scope of the term "books" under the Central Excise Tariff. The Tribunal noted that children's picture, drawing, or colouring books fell under Chapter 49.03 of the Tariff, which specified that such books were compiled for children's interest or amusement, with pictures as the primary focus. The Tribunal clarified that books of general interest should not be limited to specialists and could target specific population segments. Based on the HSN classification and the understanding of books of general interest, the Tribunal concluded that children's books, including colouring books, could be considered books of general interest, entitling them to the exemption under Notification 61/88. Consequently, the Tribunal allowed the appeal of the appellants, granting them the consequential relief in line with the decision.

In conclusion, the Appellate Tribunal CEGAT, Madras, in its judgment, clarified the classification of children's colouring books as books of general interest under Notification No. 61/88. By interpreting the scope of books under the Central Excise Tariff and considering the broad appeal of children's books, the Tribunal ruled in favor of the appellants, allowing the exemption and providing consequential relief.