1998 (1) TMI 129 - AT - Central Excise

Summary

Issues: Classification of printed plastic films u/s 3920.32, incidental nature of printing, applicability of Chapter Note 10 and Section Note 2 to Section VII.

The Appellate Tribunal considered the case where plain plastic films were printed after duty payment, initially classified under sub-heading 4901.90 but later changed to 3920.32, leading to a demand for differential duty. The Collector (Appeals) held that the printing was not merely incidental, contrary to the department's view, based on Section Note 2 to Section VII, prompting the appeal.

The main issue was whether the printing on the plastic films was incidental or of primary nature. The respondent argued that the printed details were essential for buyers, akin to manufacturers of labels, citing a Supreme Court judgment. The department referred to Chapter Note 10 of Chapter 39, emphasizing the classification of printed plastic sheets under that chapter.

After considering the arguments and relevant legal provisions, the Tribunal concluded that if the printing on plastic sheets contributes more than incidental information, it falls under Chapter 49. In this case, the printed details were crucial for buyers to make purchasing decisions, indicating a primary purpose rather than incidental. Therefore, the Section Note prevailed, leading to the classification u/s Chapter 49. The department's appeal was dismissed based on this analysis.