Classification of printed thermal paper rolls under Central Excise Tariff Act upheld by court

The case involved the classification of "printed thermal paper rolls" under the Central Excise Tariff Act, 1985. The dispute centered on whether the product should be classified under Chapter Heading 49.01 for printed books or Head 4811.90 for coated paper. After evaluating the manufacturing process emphasizing printing activities, the court affirmed the classification under Chapter Heading 49.01. Precedents supported this decision, dismissing the appeal and upholding the significance of the printing process in determining product classification under the Act. Additionally, related appeals concerning printing on ordinary paper were also dismissed based on similar principles.

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Issues involved: Classification of "printed thermal paper rolls" under Chapter Heading 49.01 or 48.11 of the Central Excise Tariff Act, 1985.

Analysis:
In the case at hand, the primary issue revolves around the classification of the product "printed thermal paper rolls" manufactured and cleared by the respondent. The respondent asserts that the correct classification is under Chapter Heading 49.01, which pertains to printed books and products of the printing industry. On the other hand, the Department argues that the proper classification should be under Head 4811.90, which covers paper and paperboard coated, impregnated, or printed. The critical contention is whether the process undertaken by the assessee primarily involves printing work, as claimed by the respondent, or if other factors should determine the classification.

Upon examining the manufacturing process described by the Company's Director, it is evident that the main raw material used is one side coated thermal paper, which is then subjected to printing as per the buyers' requirements. The process involves printing on the uncoated side of the thermal paper, with the coated side remaining blank or having the buyer's monogram printed as background. The rolls are subsequently cut, slit into smaller rolls, and packed for sale. The key aspect highlighted is that the assessee is primarily engaged in printing activities and supplies the printed rolls to customers based on their orders. The end use of the product by the purchaser is deemed irrelevant for classification purposes, emphasizing that the focus should be on the manufacturing process undertaken by the respondent.

The description of the work carried out by the assessee underscores the printing nature of the activities, leading to the rightful classification under Chapter Heading 49.01. The fact that thermal paper rolls are utilized as raw material or undergo size modifications does not alter the classification criteria. The judgment cites precedents such as 'Headway Lithographic Company v. CCE, Kolkata' and 'Holostick India Ltd. v. CCE, Noida' to support the classification based on the nature of the manufacturing process. Consequently, the appeal is dismissed, affirming the classification under Chapter Heading 49.01.

In a related matter encompassing appeals concerning the manufacturing process involving printing on ordinary paper, the decision in Civil Appeal No. 285 of 2007 is upheld, resulting in the dismissal of these appeals as well. This reaffirms the importance of the printing process in determining the classification of products under the Central Excise Tariff Act, 1985.

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