Printed tinned sheets of Chapter 72 - Eligibility for exemption Notification No. 174/86 - Clarification regarding - Central Excise - 9/91-Cx.4

Printed tinned sheets of Chapter 72 - Eligibility for exemption Notification No. 174/86 - Clarification regarding Circular No. 9/91-Cx.4 Dated 10-7-1991 [From F.No. 167/9/89-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Printed tinned sheets of Chapter 72 - Eligibility for exemption Notification No. 174/86 - Clarification regarding. The Doubts have been expressed whether printed tinned sheets would be covered by the expression "painted, lacquered, varnished or plastic coated sheets", occurring in Notification No.94/88-CE, dated 1-3-1988, 174/88-CE, dated 13-5-1988, 202/88-CE, dated 20-5-1988. 2. The Trade has represented that for a long time, as clarified by Board in Tariff Advice No. 48/82, dated 9-8-1982, the expression 'lacquered varnished sheets', which was the tariff description in Item 28, and subsequently Tariff Item 25(13) of the erstwhile Tariff, was taken to cover printed tinned sheets also. After 1-3-1988 'printed tinned sheets, are reportedly sought to be taken as a separate category distinct from 'printed, lacquered, varnished or plastic coated' sheets and consequently not eligible for the benefit of exemption under Notification N0.174/88-CH. It has been contended that either printed sheets be regarded as covered by the exemption, of if printing, is distinguished from 'painting, lacquering, varnishing of plastic coating', the product - printed sheets - should, not be regarded as goods attracting levy of excise duty since 'printed sheets' is not explicitly covered by the description in the Heading 7210 and at best could be covered under Chapter 49 where nil duty would be attracted. 3. For classification of printed tinned sheets under Chapter 49, it is essential that the printed matter is of the essence and is not merely incidental to its primary use. In the latter case, which is also the case in respect of printed tinned sheets which are the case in respect of printed tinned sheets which are for use in containers, the printing cannot be regarded as being of the essence and such printed tinned sheets would be more appropriately classified under Chapter 72. 4. The matter has been examined in the context of trade understanding and practice prior to 1-3-1988, the interpretation of various sub-heading of 7210 in HSN and the scheme of classification modelled on HSN as adopted in CETA 1935 e.g. 1-3-1988. Attention is drawn to HSN Explanatory Notes to Heading 7210 (page 996) which indicates that the products subjected to more than one type of coating, plating or clading are to be classified according to the last process. By an amendment in 1988, HSN Explanatory Notes, now explicitly state that "for the purpose of sub-heading of heading 7210, products subjected to more than one type of coating, plating or clading are to be classified according to the last process. In the case of printed tinned sheets, it is learnt that sheets are invariably varnished after printing. Consequently they would be covered by the expression 'painted, varnished or plastic coated sheets'. In other words 'painted, lacquered, varnished or plastic coated sheets' are to be taken to refer to such sheets on account of the printing on them giving them their essential characteristic are subjected to varnishing as the last process, are therefore to be regarded as varnished sheets falling under Heading 7210.30. As 'varnished sheets' they would be entitled to the benefit of exemption Notification Nos. 94/88-CE, 174/88-CE and 202/88-CE. Similarly where the width of the sheets does not exceed 600 mm, and are classifiable under Heading 7212, the sub-heading 7212.30 would interalia cover tinned sheets which have been painted, lacquered, varnished or plastic coated as the last process and these would be eligible for exemption under Notification Nos. l74/88-CE and 202/88-CE. 5. Accordingly, it is clarified that the expression 'painted, lacquered, varnished or plastic coated sheets' would also cover interalia tinned sheets subjected to a process of printing and varnishing. They would be classifiable under Heading 7210.00/7212.00 (Sub-heading 7210.30 or 7212.30) and would be eligible for benefit of Notification No. 94/88-CE, dated 1-3-1988, 174/88-CE, dated 13-5-1988 and 202/88-CE, dated 20-5-1988.