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TMI Blog2012 (8) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... position is obvious in the case of gift wrappers supplied to Sahara Airlines and is a reasonable inference in the case of Rolon Belt Sleeves. So we order classification of the product under sub-heading 4819.19. - The respondents had raised the issue that the demand is raised considering cum-duty-price as assessable value. They pray that the price realized should be split as assessable value and duty in which case the demand will come down. We are of the view that such benefit should be given in this case. Since this is a dispute about classification of the goods and no special role played by the Director is brought on record to impose penalty on him, we find it proper to waive penalty imposed on the Director of the Respondent Company and i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case records and relying on the general understanding of the product description. 4. In this case, the adjudicating authority had ordered the products should be classified under Heading 4819.19. On appeal filed by the respondents with the Commissioner (Appeals), Commissioner (Appeals) has held that the impugned products were to be classified under Heading 4821.00. 5. Revenue is relying on the Explanatory Note given in HSN regarding the scope of the entry 4819 which is reproduced below :- "4819 - CARTONS, BOXES, CASES, BAGS AND OTHER PACKING CONTAINERS OF PAPER, PAPERBOARD, CELLULOSE WADDING OR WEBS OF CELLULOSE FIBRES; BOX FILES, LETTER TRAYS, AND SIMILAR ARTICLES, OF PAPER OR PAPERBOARD OF A KIND USED IN OFFICES, SHOPS OR TH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly, the construction of the container itself providing the means of forming the other sides, although, where appropriate, additional means of fastening, such as adhesive tape or staples may be used to secure the bottom, or lid. The articles of this group may be printed, e.g., with the name of the merchant, directions for use, illustrations. Thus, seed packets with pictures of the products and sowing directions, in addition to the name of the firm, or chocolate or cereal packets with pictures for the amusement of children remain classified in this heading. (B) Box files, letter trays and similar articles of a kind used in offices, shops or the like. This group covers containers, such as filing cabinets, box files, letter trays stora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e.g., string. These labels may be plain, printed to any extent with characters or pictures, gummed, fitted, with ties, clasps, hooks or other fasteners or reinforced with metal or other materials. They may be perforated or put up in sheets or booklets. Self Adhesive printed stickers designed to be used, for example, for publicity, advertising or mere decoration, e.g. "comic stickers" and "window stickers", are excluded (heading 49.11)" 7. Revenue's argument is that Heading 48.21 covers only items like labels of a kind used as attachment to any type of package for the purpose of indicating its nature, identity, manufacturer, price, etc. It is therefore argued that papers designed and printed for packing goods and gift articles cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Perfect Packaging (supra) is more akin to the case at hand where the decision has been that the product was classifiable under sub-heading 4819.12. From the HSN Notes it is clear that the classification of the product is to be determined having regard to the fact whether the item in question was just an attachment to indicate the nature of the product, identity, manufacturer, price, etc., or whether it was used as a wrapper, which may also indicate nature of the product, identity, manufacturer, price, etc. In the former case the item is to be classified under Heading 48.21 and later classified under Heading 48.19. 11. In the case of goods in question it is fairly clear that the product is used as wrapper and such product is clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le value and duty in which case the demand will come down. We are of the view that such benefit should be given in this case. 14. The respondents also submitted that if this appeal is decided against them, then they should be allowed to pay 25% of the duty confirmed against them as penalty to close the case after following the provisions of Section 11AC of the Central Excise Act, 1944. In the light of the decision of the Gujarat High Court in the case of CCE v. Harish Silk Mills Ltd. - 2010 (255) E.L.T. 393 (Guj.), we give the appellant an option to pay duty demand payable along with interest and 25% of the duty demanded as penalty within 30 days of receipt of the order. The respondent himself should work out the duty payable after av ..... X X X X Extracts X X X X X X X X Extracts X X X X
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