2005 (3) TMI 664 - AT - Central Excise

Appellant's Duty Demand on Online Lottery Receipts Deemed Unsustainable

GOPSONS PAPERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NOIDA

GOPSONS PAPERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NOIDA - 2005 (192) E.L.T. 627 (Tri. - Del.) Issues: Duty demand on online lottery receipt and other articles manufactured by the appellant, classification of appellant's activities under heading 49, entitlement to import paper for printing, printing on thermal paper suitability, sustainability of duty demand.In this case, the primary issue revolved around the duty demand imposed on the appellant concerning online lottery receipt and other articles manufactured by them. The appellant received thermal paper in rolls, subjected them to printing, and then sent the printed paper after cutting. The contention was that the appellant's activity primarily involved printing, making the products liable to be classified under heading 49 and exempt from duty. On the other hand, the Departmental Representative argued that printing on thermal paper was not suitable, challenging the appellant's claim. However, a perusal of the records revealed that the appellant printed various products, some of which required printing on thermal paper. It was established that the appellant's core activity was printing, and their products fell under Chapter 49 as printed products exempt from duty. Consequently, the duty demand was deemed unsustainable, and the demands were stayed with the requirement for pre-deposit waived until the appeal's disposal. The matter was scheduled for further hearing on a specified date.The Tribunal examined the nature of the appellant's activities, emphasizing the printing aspect and the classification of the products under Chapter 49. The appellant's entitlement to import various types of paper for printing purposes, including the use of thermal paper for specific items, was crucial in determining the duty liability. The argument put forth by the Departmental Representative regarding the suitability of thermal paper for printing was countered by the appellant's established practice of printing on different materials. The Tribunal's analysis focused on the exemption from duty for printed products under Chapter 49, reinforcing the appellant's position and invalidating the duty demand. The decision to stay the demands and waive the pre-deposit requirement showcased the Tribunal's recognition of the appellant's activities falling within the ambit of printing, thereby exempting them from duty obligations. The case highlighted the importance of accurate classification and understanding of manufacturing processes in determining duty liabilities, ultimately favoring the appellant based on the nature of their operations and the products involved.