Central Excise - Classification of paper printed with format of airline tickets or embarkation/dis-embarkation cards which have ink/carbon deposited at appropriate places on reverse side, and of continuous stationery for computers whether single ply, or inter-leaved with carbon, and printed - Clarif - Central Excise - 11/91-CX.4

Central Excise - Classification of paper printed with format of airline tickets or embarkation/dis-embarkation cards which have ink/carbon deposited at appropriate places on reverse side, and of continuous stationery for computers whether single ply, or inter-leaved with carbon, and printed - Clarification regarding Circular No. 11/91-CX.4 Dated 15-10-1991 [From F. No. 61/32/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Classification of paper printed with format of airline tickets or embarkation/dis-embarkation cards which have ink/carbon deposited at appropriate places on reverse side, and of continuous stationery for computers whether single ply, or inter-leaved with carbon, and printed - Clarification regarding. Reference to Board's Circular No.39/90-CX.4, dated the 10th October, 1990 on the classification of printed continuous stationery for computers under Sub-heading 4823.90 and to say that - (i) representations continued to be received from the Trade for classification of such continuous stationery for computers, whether single ply or inter-leaved with carbon and printed, under Sub-heading 4823.90, as manifold business forms. (ii) doubts were raised on correct classification of paper printed with format of airline tickets or embarkation/dis-embarkation cards which have ink/carbon deposited at appropriate places on reverse side. So far as latter point is concerned, the matter arose on representation of Sivakasi Master Printers' Association and All India Master Printers' Association against levy of duty on paper sheets printed with format of airline tickets or embarkation/dis-embarkation cards with ink/carbon deposited at appropriate places on reverse side. A view had been taken that these products merit classification under Heading 4809 or 4816 of Central Excise Tariff Act, 1985. On the other hand it was contended that such sheets are formed only at intermediate stage in making final products and thus these can not be regarded as marketable goods attracting levy of Central Excise duty or alternatively they should be regarded as product of printing industry classified under Chapter 49 of Central Excise Tariff Act. 2. The matter was discussed in the Tariff-cum-General Conference of Collectors of Central Excise (West Zone) held at Bombay on 26th and 27th March, 1991, which recommended that the Board may examine the issues in depth and issue a suitable clarification in the matter. Accordingly the matter was examined in detail by the Board. 3. The Board saw the varieties of products under dispute and observed that :- Heading 4901, being identically worded as Chapter 49 in HSN and Central Excise Tariff Act, will, in the absence of anything contrary in Chapter and Section Notes, have the same scope as Chapter 49 HSN. It will cover all articles falling in any of the Headings of Chapter 49 HSN. Therefore, products having fiduciary value in excess of the intrinsic value, like cheques, forms, bond, share certificate, stamp impressed postal stationery, documents of title, etc., will be covered by Sub-heading 4901.90, CETA. Similarly, tickets, printed circulars, letters, forms etc. which are essentially printed matter requiring filling up of only minor details, would be covered by Sub-heading 4901.90. However, a question arises whether a blank or format of a ticket (without any particulars of passenger, journey, train etc.) would be included in the reference to ticket in HSN Explanatory Notes under Heading 4911 at page 699. One view could be that such a 'format' is not a ticket and is more appropriately recorded as a product of Chapter 48; the other that blanks, when filled, only particulars of the ticket, which is a ticket even without such particularization. It is, difficult to precisely indicate what constitutes 'essentially printed matter' in respect of the vast variety of printed products. But, taking a cue from the items described in the Heading 4820, forms, which require filling up of major or essential details like order forms, receipts, invoices, gate passes, bills etc., will fall under Chapter 48. These cannot be regarded as 'manifold business forms' and 'inter-leaved carbon sets' which have a restricted and specialised meaning as per HSN Explanatory Notes, nor can Heading 4820 be regarded as residuary entry for stationery articles, in view of heading 4823 being a residuary item explicitly covering certain articles of stationery. The Heading 4820 covers articles similar to 'note book', order books, receipt books, letter pads, memorandum pads and since such computer stationery, either plain or printed with EZR lines or with format of bills, receipts etc., are fan folded not separated and sold in bundles of 1000 sheets and used as sheets and torn off, they could be regarded as covered by the expression "and similar articles" in Heading 4820. Consequently classification under Heading 4820 is to be preferred over the residuary Heading 4823. They would be eligible for exemption under Notification No.43/86. 4. The Board, therefore, held that - (i) Printed paper covered by Chapter 49 HSN would fall under Sub-heading 4901.90 CETA. Therefore, products which (where necessary, after completion and validation) have a fiduciary value in excess of intinsic value e.g. cheques, forms, stock certificates, bills of lading, documents of title rail tickets (whether for use on computers or others) etc. would be classified under Heading 4901.90. Airline tickets (including blanks) and embarkation/disembarkation cards (E.D. Cards), which may have ink/carbon deposited at appropriate places on reverse side, will also be covered under Heading 4901.90. (ii) Continuous computer stationery, whether plain or inter-leaved with carbon and whether plain or printed with a EZR lines name or logo of company or format of bills, order forms, gate pass etc., will be classifiable under Heading 4820 and exempt under Notification No. 43/86-C.E. 5. Board's Circular No.39/90-CX.4, dated 10th October, 1990, issued from F.No. 61/31/90-CX.4 is hereby withdrawn.