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TMI Blog1994 (7) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... y by itself cannot bring the carton into existence. Any amount of fancy printing on a card-board would not make it a carton. In the process of manufacturing the printed cartons, the card-board has to be cut, printed, creased and given the shape of a carton by using paste or gum. Simply because there are expensive prints on the carton such a printed carton would not become the product of the Printing Industry. It shall remain the product of the Packaging Industry. Appeal dismissed. - 4770 of 1994 - - - Dated:- 14-7-1994 - Kuldip Singh and S. Mohan, JJ. [Judgment per : Kuldip Singh, J.]. - Special leave granted. 2. The question for consideration in this appeal is whether printed cartons manufactured by the appellant-company are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Salt Act, 1944 (the Act) from the whole of the duty of excise. The Notification was amended from time to time. Amongst the goods specified are the following :- All products of Printing Industry including newspapers and printed periodicals. The appellant claimed that printed cartons are a product of the Printing Industry and, as such, exempt from duty under the Notification. 5. The appellant filed a classification list dated October 26, 1979 wherein it claimed the benefit of the exemption under the Notification in respect of the printed cartons manufactured by it. Classification list was approved by the Assistant Collector of Central Excise. The appellant thereafter manufactured and cleared the printed cartons without payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tood in the trade as products of the Printing Industry. The dominant activity in the manufacture of a printed carton is the printing activity and the cutting, creasing and gluing, if any, are only supplementary. It was further contended that the printed cartons have become a medium of advertising the product. It enhances the sale value of the goods. The art work is chosen so that the brand name and trade mark of the manufacturer are highlighted. The appearance and the visual impact of the printing on the carton are of utmost importance and occupy the major time and expense in the manufacture of the carton. It was, therefore, finally contended that the printed cartons are known and understood in the trade as the product of the printing indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting Industry? The answer has to be in the negative. An ordinary carton without any printing on it is a completed product and undisputably the product of Packaging Industry. The question for our consideration is, does it cease to be the product of Packaging Industry as and when some printing is done on the said carton? We are of the view that to a common man in the trade and in common parlance a carton remains a carton whether it is a plain carton or a printed carton. The extreme contention that all products, on which some printing is done, are the products of the Printing Industry cannot be accepted. The Division Bench of the High Court has rightly rejected the contention on the following reasoning :- In our view, it would be an extrem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly contended before us that the cost involved in printing a carton is much more than the price of the paper or other material used for making the carton. It was further urged that most of the stages through which the printed carton as a product is processed relate to printing and primarily the printing machines and presses are used in the process. It is thus contended that the product is of Printing Industry and not of Packaging Industry. The argument has been lucidly dealt with by the Division Bench of the High Court and rejected the following reasoning :- The classification of manufactured goods cannot be dependent merely upon their place of production. The product wherever produced must be classified having regard to what it means an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ork on it, which is merely incidental. In our view, the fact that sometimes more money may be spent on printing than other things, will make no difference. 11. We agree with the reasoning and the conclusions reached by the Divison Bench of the High Court. What is exempt under the Notification is the Product of the Printing Industry . The product in this case is the carton. The Printing Industry by itself cannot bring the carton into existence. Any amount of fancy printing on a card-board would not make it a carton. In the process of manufacturing the printed cartons, the card-board has to be cut, printed, creased and given the shape of a carton by using paste or gum. Simply because there are expensive prints on the carton such a pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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