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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 ..... the appellants are only contesting the issue on limitation. 2.1 The primary issue involved in the dispute is if the products manufactured by the appellants are classifiable under Chapter heading 48 or under Chapter 49. It is the claim of the appellants that the products manufactured by them are classifiable under chapter 49 whereas the Revenue sought to classify the same under Chapter 48. The specific headings are listed in table above in para 2. 2.2 Learned counsel pointed out that chapter note 12 and 14 of Chapter 48 determines criteria for classification 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 print ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise Tariff Act 1985 as held by the impugned order. Learned counsel relied on the decision of Tribunal in the case of Sri Kumar Agencies 2016 (344) ELT 507, wherein para 17.3 and 18 following has been observed. "17.3 From a careful reading of the above, it is clear that if the printing is considered essential for the purpose then pe printed paper cannot be retained under Chapter 48. In the facts of the present case, as claimed by the assessees, the ing is of a sophisticated nature and the printed materials contain details 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 49. The said notice read as follows: "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." 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey are essentially printed matter. Thus, printed forms (e.g., magazine subscription forms), blank multi-coupon travel (e.g., air, rail and coach) tickets, circulars, letters, identity documents and cards and other articles printed with messages, notices, etc., requiring only the insertion of particulars (e.g. dates and names) are classified in this heading........". The heading 4911 also includes tickets for admission to places of entertainment (e.g., cinemas, theatres and concerts), 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... These Inland letter cards are printed with all particulars and shall not undergo any further printing or writing. They contain personal information like notices, reminders, etc. Sometimes these cards require only insertion of particulars like names and addresses. In the situation, where printing on inland letter cards is not merely incidental, goods are classifiable under heading 4911. However, plain letter cards are classifiable under heading 4817, which reads 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 voti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduct needs to be classifiable under Chapter 49 and not under Chapter 48. 6. The second issue relates to classification of the waste paper. The appellants have sought to classify the same under Chapter 49, however Revenue sought to classify the same under Chapter 48. 7. The impugned order does not give any finding whatsoever on this issue. In para 21 of the said order which discusses item No. 1,2,4 and 5 of the table above but there is no discussion whatsoever of item No. 3, namely 'Waste Paper'. We also find that even in Order-in-Original, there are no specific findings. 8. The next issue raised relates to the Notification of extended period of limitation. 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 Holostick India Ltd. 2015 (318) ELT 529 (SC). From the nature of dispute, it is apparent that it was possible that appellants to hold a bonafide belief in respect of item No. 1,2,4 & 5 and therefore, in such circumstances, extended period of limitation in respect of these items cannot be in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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