2004 (9) TMI 261 - AT - Central Excise

Tribunal Rules in Favor of Appellants: Printed Gay Wrappers Classified as Printed Products, No Excise Duty Levied.

The Tribunal ruled in favor of the appellants, classifying the Printed Gay Wrappers under chapter 4901.90 as printed products, consistent with prior ... Classification of Printed Gay Wrappers - Judicial discipline - Demand - Duty liability - Penalty - Interest - HELD THAT:- We find that the classification of gay wrapper has already been decided by the Tribunal in the cases quoted above. The decision of the Tribunal in the Web Impressions case is based on another decision of the Tribunal in Paxwell Printers v. CCE, Bangalore [2000 (2) TMI 874 - CEGAT BANGALORE]. Since the decision of the Tribunal has been upheld by the SC for classification in respect of the same product, in the true spirit of judicial discipline, we have to follow the same. Hence, we hold that the impugned product is classifiable under chapter 4901.90. In view of this, it is not necessary to go into all the other issues. When the impugned product is classifiable under Chapter 4901.90, no duty can be levied and the demand is liable to be set aside. The penalties imposed and interest demanded are also not sustainable. Hence all these appeals are allowed. Issues involved: Classification of Printed Gay Wrappers under Central Excise Act, 1944.The judgment addressed the issue of classification of Printed Gay Wrappers used by cigarette manufacturers. The department alleged that the wrappers were classifiable under sub-heading No. 4823.90, while the appellants claimed classification under chapter 4901 as products of the printing industry. The Commissioner confirmed duty and imposed penalties based on the department's position.The department argued that the wrappers are products of the packing industry, citing legal precedents such as Rollatainers Ltd. v. UOI and Smit Enterprises v. Collector of Central Excise. They contended that the wrappers should be classified under sub-heading 4823.19. However, the appellants relied on the decision in Web Impressions (India) Pvt. Ltd. v. CCE, Calcutta, where the CEGAT classified similar products under sub-heading 4901.90 as printed products. The appellants also argued that they were not the manufacturers of the wrappers, and any liability should fall on the job workers.The Tribunal, after considering the arguments, upheld the classification under chapter 4901.90 based on previous decisions and judicial discipline. As a result, no duty was levied, and the penalties and interest imposed were deemed unsustainable. Therefore, all appeals were allowed in favor of the appellants.