2015 (9) TMI 154 - SC - Central Excise

Classification of good - printing of metal backed advertisement material/posters, commonly known as Danglers - Whether the respondent/assessee s product was classifiable under Chapter 49 sub-Heading 4901.90 attracting nil excise duty or it is to be classified under Chapter 83 sub-Heading 8310 of the Central Excise Tariff Act Chapter 49 deals with Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans - Held that - assessee is engaged in the business of printing metal backed advertisement material/posters, commonly known as Danglers, placed at the point of sale, for customers information/advertisement of the products brand etc; the entities have calendars, religious motifs also printed in different languages. - products cannot be treated as Printed Metal advertisement posters. The Tribunal 2005 (3) TMI 237 - CESTAT, MUMBAI has considered this aspect in detail. In its impugned judgment the Tribunal had rightly decided the case in favour of the respondent-assessee holding that the products were classifiable as printed products of the printing industry. - Decided against Revenue.

Summary

Issues: Classification of products for excise duty - Chapter 49 vs. Chapter 83

Classification under Chapter 49 (Entry 4901.90):
The main issue in this case was whether the respondent's product should be classified under Chapter 49 sub-Heading 4901.90, attracting nil excise duty, or under Chapter 83 sub-Heading 8310 of the Central Excise Tariff Act. The respondent argued that their product falls under Entry No. 4901.90, which covers "other" printed products. The Tribunal had previously ruled in favor of the respondent, classifying the products as printed products of the printing industry. The products in question included metal-backed advertisement materials like Danglers, calendars, and religious motifs printed in different languages. The Tribunal's decision was based on a detailed examination of the nature of the products.

Classification under Chapter 83 (Entry 83.10):
On the other hand, the Revenue contended that the products should be classified under Entry 83.10 of Chapter 83, which pertains to "Miscellaneous Articles of base metal." Entry 83.10 specifically includes sign-plates, name-plates, address-plates, and similar items made of base metal. The Revenue sought to recover excise duty based on this classification. However, the Tribunal disagreed with the Revenue's classification and upheld the respondent's classification under Chapter 49.

Conclusion:
After considering the arguments and examining the nature of the products, the Supreme Court dismissed the appeal, affirming the Tribunal's decision to classify the products under Chapter 49 as printed products of the printing industry. The Court found that the products, such as metal-backed advertisement materials and posters, did not fall under the category of miscellaneous articles of base metal as contended by the Revenue. Therefore, the excise duty liability based on Chapter 83 was not applicable, and the products were correctly classified under Chapter 49.