2001 (3) TMI 354 - AT - Central Excise

Summary

Issues:
Classification of product "Post It Memo Boards" under Chapter 4811.20 as 'gummed or adhesive paper or paper board' instead of Chapter 4820.00 as an article of stationery.

Analysis:
1. The lower authorities determined the product to be a bulletin/notice board with a gummed or adhesive paper/paper board used for sticking memos, notes, and artwork. The Commissioner (Appeals) correctly identified its function as a bulletin/notice board based on the product's design and purpose.

2. The appellants argued that the product is primarily used for posting notes, messages, and artwork, not as adhesive paper or paper boards. They referred to a Supreme Court decision emphasizing the mental association between the article and its purpose in the customer's mind. However, the Commissioner (Appeals) found that the product's main function is to hold memos and notes, categorizing it as a bulletin/notice board, not an article of stationery. The appellants failed to provide substantial evidence to challenge this classification.

3. The appellants contended that goods should be classified based on 'popular sense' when no clear definition exists in the fiscal statute. However, they did not present concrete evidence to support their claim that the product is commonly understood as an article of stationery. Despite asserting that the product is used as office stationery, they could not substantiate this argument with relevant material to dispute the lower authorities' findings.

4. Examination of Heading 48.11 revealed that it encompasses various types of paper/paper board, including the product in question, which is used as a bulletin/notice board. In contrast, Heading 48.20 does not align with the product's characteristics, as it pertains to articles primarily for completion in manuscript or typescript, which does not apply to the subject entity that cannot be written or typed on.

5. The Commissioner (Appeals) invoked Note 9 of Chapter 48 to exclude loose printed sheets/boards from Heading 48.20, determining that the product's loose sheets printed in packets were not classifiable under 48.20. The appellants failed to provide a valid explanation or reasons to challenge this application of Note 9, leading to the affirmation of the Commissioner's decision.

In conclusion, the Appellate Tribunal upheld the order of the Commissioner (Appeals) as there were no grounds to overturn the classification of the product "Post It Memo Boards" as a bulletin/notice board under Chapter 4811.20, dismissing the appeal accordingly.