2006 (5) TMI 19 - AT - Central Excise

Tribunal reclassifies printed rolls as products of printing industry, not thermal paper, supporting commercial practices.

GOPSONS PAPERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NOIDA

GOPSONS PAPERS LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NOIDA - 2006 (202) E.L.T. 313 (Tri. - Del.) Issues:1. Correct classification of items produced by the appellant.2. Dispute over classification of rolls as thermal paper or products of the printing industry.3. Additional dispute regarding the authorization of the appellant's imports.Issue 1: The main dispute revolves around the correct classification of the items produced by the appellant. Initially imported as thermal paper under heading 4811.90, the appellant converts them into paper rolls as per specific orders from customers. The appellant's contention is that these rolls, used for printing lottery tickets, should be classified under heading 4901.90 as products of the printing industry. However, the Commissioner held that the classification should remain under 4811.90 as printed thermal paper, considering the imported material and processed material as the same.Issue 2: The core issue is whether the printed rolls have transformed from thermal paper to products of the printing industry. The appellant argues that the printing of lottery ticket details makes the rolls blank lottery tickets, emphasizing that the printing is not merely incidental. Reference is made to Note 11 of Chapter 48 to support this argument. The Commissioner, on the other hand, contends that without specific ticket numbers, the rolls retain their identity as thermal paper. The Tribunal, disagreeing with the Commissioner, highlights commercial practices and notes that the printing of essential details on the rolls does not change their classification. Citing a previous decision, the Tribunal classifies the rolls under heading 4901.90 as per normal commercial practices.Issue 3: In addition to the classification dispute, an extra issue arises in one appeal regarding the authorization of the appellant's imports. The appellant asserts that the imported thermal paper falls within the authorized raw materials specified by the NOIDA Export Processing Zone Authority. The Tribunal agrees with the appellant, noting that the thermal paper is required for manufacturing tickets and falls under the revised entry of authorized imports. Consequently, the Tribunal sets aside the impugned orders and allows the appeals with consequential relief to the appellants.In conclusion, the judgment primarily focuses on the correct classification of the appellant's products, emphasizing the distinction between thermal paper and products of the printing industry based on the nature of printing carried out. The Tribunal's decision clarifies the classification under heading 4901.90, addressing both the classification dispute and the issue of the appellant's authorized imports.