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TMI Blog2019 (9) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... blank spaces on the front page to be filled specific to the consumption and charges etc. Not only it has advertisements but all instructions with respect to the consumption and charges plan are also printed on the bill. Thus, it cannot be accepted that the argument of the learned Departmental Representative that the printing is merely incidental to the primary use - thus, the printed electricity bills have been correctly classified under heading 4911 in the impugned Order-in-Appeal and the Revenue s plea to classify the same under heading 4920 is not acceptable. Classification of waste and scrap of paper - HELD THAT:- The waste and scrap of paper under reference is not liable to excise duty and the findings of the Order-in-Appeal are upheld - benefit of SSI Notification no. 8/2003-CE and Notification 01/2011-CE and cum-duty benefit also allowed. Penalty - HELD THAT:- There are no infirmity in the order of Commissioner (Appeals) in reducing penalty to 50% of the demand confirmed under Section 11AC of the Central Excise Act, 1944 for the reason that all the transactions were duly recorded in books of account and the invoices were duly issued, hence the charge of willful suppression ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24,381/- was set aside in the impugned Order-in-Appeal against which Revenue is in appeal before us. In his order the Commissioner (Appeals), having regard to the clarification issued by the Board vide Circular No. 1052/1/2017-CX, dated 23-2-2017 as well as by various judgments the individual items manufactured by the respondent have been decided to be classifiable under chapter heading 4901/4911 and accordingly, held to be non dutiable. 4. Now the Revenue has challenged the classification of cover page of books classified in Order-in-Appeal under heading 49.01 claiming the same to be book cover falling under Heading 4820. Likewise, the Revenue has also challenged the classification of Printed (Electricity) Bill printed for Madhya Pradesh State Electricity Board which Commissioner (Appeals) has decided under Chapter heading 4911 and accordingly, the duty on such goods was also held to be not payable. The third issue of classification challenged by the Revenue is that of waste and scrap of paper where Commissioner (Appeals) has held that the basic criteria of manufacture was not satisfied and the product was not classified under CET Chapter heading 48 whereas the Revenue has claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re in individual sheet form cut to size and are ultimately to be bound with the printed books, separately got published by the Education department of State of Madhya Pradesh. They, ultimately, will be an integral part of the printed books and accordingly even in terms of chapter note 4(c) of chapter 48, being in the nature of individual sheets cut to size and where the printing is the primary function and not an incidental activity as the book cover will be ultimately used as part of books, would be appropriately classified under chapter heading 49 01. He produced the samples of book cover under consideration. He further submitted that in an identical matter the Hon'ble Tribunal, New Delhi in the case of CCE, Bhopal Vs. M/S Kailash Printing Press [FINAL ORDER NO. 51384-51386/2018 dated 06.04.2018] has upheld classification of such product under heading 4901. 8. We have carefully examined the sample of the book cover submitted by the learned Counsel of the respondent and the rival arguments. We find that the book cover under consideration is infact 'cover page' or 'title cover' of the book and is an integral part of the book. The book cover classified under heading 4820 are genera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decision in M/S Surya Offset Vs. CCE Ahmadabad. Referring to the said decision, the Tribunal observed that:- "As regards reliance of Revenue in the case of Surya Offset, wherein Tribunal holds a contrary view, needs to be addressed at this juncture. It is seen from the said decision of Surya Note 12 to Chapter 48. It can also be seen in Para 6 of the said decision, this Bench has reproduced the HSN Explanatory Notes of Chapter 49.11, which was, in fact, found in the old HSN. The current HSN and clarificatory note which is reproduced in Paragraphs 18 & 20 hereinabove would clearly indicate that Bench was considering the issue by considering HSN Explanatory Notes, which were amended or substituted. It is also further seen that the decisions as has been produced before us, as indicated by us in preceding paragraphs as regards classification of identically placed goods, were never produced before the Bench, due to which, the view taken by the Bench seems to be different than the view taken by various decisions of the Tribunal". 11. Thus following the judgement in the case of Data Processing Forms Pvt Ltd. Vs. Commissioner of Central Excise Ahmadabad [2014(311) ELT 161], we hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... classified as discussed above. They do not manufacture any waste and scrap paper. We find no justification to demand central excise duty on the scrap paper arising during the process of production of various items as mentioned above." 13. Accordingly, following the above decision, we hold that waste and scrap of paper under reference is not liable to excise duty and the findings of the Order-in-Appeal are upheld. We also do not find any infirmity in the impugned Order-in-Appeal with regard to allowing benefit of SSI Notification no. 8/2003-CE and Notification 01/2011-CE and cum-duty benefit as the Hon'ble Supreme Court in the case cited has held as under: "15. From the above decisions, it is clear that even if an applicant does not claim benefit under a particular notification at the initial stage, he is not debarred, prohibited or stopped from claiming such benefit at a later stage. " 14. Finally, we also find no infirmity in the order of Commissioner (Appeals) in reducing penalty to 50% of the demand confirmed under Section 11AC of the Central Excise Act, 1944 for the reason that all the transactions were duly recorded in books of account and the invoices were duly issued, he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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