Dominant printing activity determines classification of printed cartons for exemption under the printing industry notification.

Printed cartons were treated as products of the printing industry because the decisive factor was the true character of the goods and the nature of the manufacturing activity. Printing was the dominant process in their manufacture, and ordinary carton manufacturers could not produce them without recognised printing capability; the printing component also formed the substantial part of total cost. On that basis, the goods were held to fall within the printing industry and were eligible for exemption under Notification No. 122/75-CE dated 5-5-1975. The revision application was allowed.

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Issues: Whether printed cartons were to be treated as products of the printing industry and therefore eligible for exemption under Notification No. 122/75-CE dated 5-5-1975.

Analysis: The decisive consideration was the true character of the goods and the nature of the manufacturing activity. Printed cartons were found not to be mere cartons for packing goods, because they could be produced only by recognised printers and not by ordinary carton manufacturers. Printing was held to be the dominant activity in their manufacture, and the cost of printing formed the substantial component of the total cost, ranging from 70% to 90% depending on the type of printing. On that basis, the goods were regarded as more appropriately falling within the printing industry.

Conclusion: Printed cartons were held eligible for exemption under Notification No. 122/75-CE dated 5-5-1975, and the revision application was allowed.

Ratio Decidendi: Where printing constitutes the dominant activity in manufacture and gives the goods their essential character, the goods may be classified by reference to the printing industry for the purpose of exemption.

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