2016 (4) TMI 774 - AT - Central Excise

Demand of excise duty - Manufacture of parts of illuminated signs classifiable under sub-heading 9405.90 of the CETA, 1985 attracting duty @18% - Appellant argued that sheets printed by them do not have any lighting source attached to it, they are merely sheets for which printing is done whereas respondent argued that earlier in the case of appellants themselves, the goods have been classified under Tariff heading 9405.90 - Held that - by relying on the decision of Hon ble Supreme Court in the case of Classic Stripes Pvt. Ltd. vs. CCE, Mumbai 2000 (12) TMI 173 - CEGAT, MUMBAI , the demands for the subsequent period has been set aside. - Decided in favour of appellant

Summary

Issues: Classification of goods under Tariff headings 9405.90 and 4901.90

Analysis:
1. The appellants were manufacturing parts of illuminated signs classified under sub-heading 9405.90 but had classified them under sub-heading 4901.90. The Commissioner confirmed demands stating that the goods were distinct items for glow sign boxes, attracting duty at 18% ad valorem.
2. The appellants argued citing the case of Classic Stripes Pvt. Ltd. vs. CCE, Mumbai, where it was held that the goods were products of the printing industry and not classifiable under heading 94.05. They also relied on the Supreme Court's decision in Metagraphs Pvt Ltd., emphasizing the primary purpose of printing on goods.
3. Another case, CCE, Aurangabad vs. Adhunik Plastic Industries, was referred to, where it was stated that if printing contributes more than incidentally to the primary use of goods, they should be classified under Chapter 49.
4. The appellants clarified that the printed sheets did not have a lighting source attached and were merely sheets for which printing was done. The demands for subsequent periods had been set aside by the Commissioner.
5. The learned AR argued that only products made of paper could be classified under Chapter 49 and pointed out that the goods had previously been classified under Tariff heading 9405.90.
6. The Tribunal referred to the Supreme Court's decision in Classic Strips Pvt. Ltd., upholding the Tribunal's decision in a similar case and setting aside the impugned order based on the settled matter.

This detailed analysis covers the classification issue under Tariff headings 9405.90 and 4901.90, discussing relevant legal precedents and arguments presented by both parties.