1998 (10) TMI 157 - AT - Central Excise

Summary

Issues:
Classification of printed continuous stationery and rulled papers under Central Excise Tariff.

Analysis:
The appellants, primarily a Printing Industry, manufacture manifold business forms and rulled papers, both considered articles of stationery. They claimed classification under Heading 4820.00 with duty exemption under Notification No. 43/86. The Assistant Collector suggested classification under sub-heading No. 4823.90, leading to a dispute. The appellants argued that their products should not be classified under 4823.90, emphasizing the marketability test and lack of conditions in the Notification. They contended that the items should fall under sub-heading 4901.90 due to the primary use of printing in the manufacturing process. The Printing Industry's role was pivotal, and the items were known and used as stationery in the market.

Regarding rulled papers, the appellant highlighted that the basic character of the paper remained unchanged after printing, and the final product was commonly recognized as stationery. The appellant's position was that both printed continuous stationery and rulled papers should be classified under sub-heading 4820.00, not 4823.90. They argued that printing was not a manufacturing process for classification under Chapter 48, except in specific cases. The products were considered classifiable under sub-heading 4901.90, attracting a nil rate of duty.

The Department's view was based on the Explanatory Notes and Circulars, but the Board's reconsideration in 1991 clarified the classification of continuous computer stationery under Heading 4820. Trade Notices further supported this classification. The Department's stance was reconsidered, leading to the acceptance of the appeal in favor of the appellants. The Trade Notices and Circulars provided clarity on the classification of printed continuous stationery, emphasizing their categorization under Heading 4820. The dispute was resolved in favor of the appellants based on the updated classification guidelines and trade notices, leading to the acceptance of the appeal.