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TMI Blog2022 (11) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... of clearance and therefore, the same would be classifiable under Chapter 49. The same argument equally applies to folders for inserting certificates which contain already pre-printed details of the arguments and nothing remains to be written on the same. Relying on the aforesaid Circular and Chapter Note 12, it is apparent that the said product needs to be classifiable under Chapter 49 and not under Chapter 48. Classification of the waste paper - appellants have sought to classify the same under Chapter 49, however Revenue sought to classify the same under Chapter 48 - HELD THAT:- The impugned order does not give any finding whatsoever on this issue. In para 21 of the said order which discusses various items but there is no discussion whatsoever of item namely Waste Paper. It is also found that even in Order-in-Original, there are no specific findings. Notification of extended period of limitation - HELD THAT:- It is seen that CBIC has issued a Circular to Clarify the classification of the goods and the interpretation of Chapter Note 12 14 of the Chapter 48. The CBEC has issued a clarification relied on decision of Hon ble Apex Court in case of M/S. HOLOSTICK INDIA LTD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assification of certain goods between chapter 48 and 49. The said notice read as under: 12. Except for the goods of heading 4814 or 4821, paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in Chapter 49. 14. Notwithstanding anything contained in Note 12, if paper and paper products of heading 4811, 4816 or 4820 are printed with any character, name, logo, motif or format, they shall remain classified under the respective headings as long as such products are intended to be used for further printing or writing. 2.3 Learned counsel pointed out that in para 14 of the impugned order, the word incidental appearing in Chapter notes has been examined in appellant s words. As per English Oxford Dictionary, the word 'incidental' means, Happening as a minor accompaniment to something else'. As per free English Dictionary, incidental' means - likely to occur as an unpredictable or minor consequence'. In other words, the dictionary meaning shows occurring or that incidental means - happens as a result of an ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tails which are required statutorily as well as certain specific informations relating to the manufacturer, brand name, logo etc. which are sought to be conveyed to the consumers. The material printed is of such a nature and they serve a definite purpose of identifying and promoting the product. In such a scenario, the printed paper acquires different characteristics and a new name (referred to as gray wrappers by the assessees) and serve definite purpose different from the unprinted paper. The wrappers are not used primarily for packing. They are used for wrapping cigarette packets and they serve definite purpose different from mere wrapping. 18. thus is these cases, the printing undertaken on paper/ paper board, cannot be considered as incidental to the purpose of packing and the printing is essential and serve a definite purpose. The distinct identity and the end-use is definitely imparted by the sophisticated printing of materials in different colours and material indicating information sought to be conveyed to the customers for the purpose of promoting the product and also to meet the statutory requirement. Therefore, the resultant products are to be treated as products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respective headings as long as such products are intended to be used for further printing or writing. In this regard CBIC has issued Circular stating as follows: 2. In this connection, statutory provisions are as under : (a) As per Rule 3(c) of General Rules for the interpretation of the Schedule, when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration . (b) As per Rule 4 of General Rules for interpretation of the Schedule, goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin . (c) As per Chapter note 10 of Chapter 48, heading 4820 does not cover loose sheets or cards, cut to size, whether or not printed, embossed or perforated. (d) As per Chapter note 12 of chapter 48, except for the goods of heading 4814 or 4821, paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of goods, fall in Chapter 49. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erts), tickets for travel by public or private transport and other similar tickets. 3. Hon ble Apex Court in the case of Holostick India Ltd. v. Commissioner of Central Excise [2015 (318) E.L.T. 529 (S.C.)] has held that holograms would not fall under chapter 39 though they had the self-adhesive property and were primarily goods made of plastic, yet due to the security features of the stickers, the said holograms will be placed under chapter 49. The reason for such a classification was that the security features gave the hologram their essential feature. 4. In the light of above statutory provisions and decision of the Hon ble Apex Court, classification of the goods ibid was examined and it is clarified as under : (a) Railway/bus/other tickets/passes - (i) These are loose sheets or cards, cut to size and therefore are not covered under heading 4820 and also the provision of Chapter note 14 is inapplicable in the matter. Printing is not merely incidental to the primary use these goods. Printing alone brings these goods in existence. Explanatory note to heading 49.11 specifically covers these goods. Therefore, these goods are classifiable under heading 4911. (ii) Simil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as envelopes, letter cards, plain postcards and correspondence cards, of paper or paper boards... (f) Application forms - These are for example bank account opening forms, forms of telecom companies, education institutions, insurance company forms and similar forms printed on specific order of the concerned bank, telephone companies, etc. These are loose sheets, cut to size and therefore are not covered under heading 4820 and also provision of Chapter note 14 is inapplicable in the matter. Printing on these forms is not merely incidental. In view of explanatory note to heading 4901 and 4911 these forms are classifiable under heading 4911. (g) Paper outer strip seals - These strips are used to seal EVMs (electronic voting machines) and are used by the election commission. For example State Election Commission, Haryana is printed on these strip seals. These are basically stickers having a self-adhesive feature where printing brings the product into existence. They have security features like guilloche patterns and anti-photocopy features. Therefore in view of printing not merely incidental and decision of Hon ble Apex Court in the matter of Holostick India Ltd. ibid, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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