1999 (11) TMI 256 - AT - Central Excise

Summary

Issues involved: Classification of products printed on PVC films, paper/paper board, and polyethylene coated paper under different sub-headings.

Classification of products printed on PVC films: The appellants claimed classification under sub-heading either 3926.90 or 4901.90, while the department upheld under 3920.19. The Tribunal considered Note 2 to Section VII of the Central Excise Tariff Act, which states that printed goods not merely incidental to their primary use fall in Chapter 49. The Tribunal found that the printing on PVC sheets was primary to the product, indicating the nature of the contents inside the package, thus correctly classified under Chapter 49.

Classification of products printed on paper/paper board and polyethylene coated paper: The appellants claimed classification under sub-heading 4901.90, while the department upheld under 4823.19. The Tribunal referred to Note 11 of Chapter 48, stating that printed goods not merely incidental to their primary use fall in Chapter 49. The Tribunal found that the printing on paper and polyethylene coated paper was primary to the product, conveying messages about the contents inside the packaging, thus correctly classified under Chapter 49.

Precedents and interpretations: The Tribunal considered various decisions, such as Metagraphics Ltd., Johnson and Johnson Ltd., Fitrite Packers, New Jack Printing Works, Adhunik Plastic Industries, and Ajanta Print Arts, which supported the classification of printed products under Chapter 49 when the printing was not merely incidental but served a primary purpose. These interpretations were found to be applicable to the facts of the case, leading to the setting aside of the impugned orders and allowing the appeals.

Conclusion: After considering submissions, inspecting product samples, and applying relevant legal interpretations, the Tribunal found that the printing on the products was not merely incidental but primary to the goods contained inside, leading to the correct classification under sub-heading 4901.90. As a result, all impugned orders were set aside, and the appeals were allowed with consequential relief as per law.