1999 (8) TMI 415 - AT - Central Excise

Appellate Tribunal Decides Printed Materials' Classification

The Appellate Tribunal CEGAT, Mumbai, determined the classification of printed materials under Chapter 48 or Chapter 49 based on the nature of printing, ... Classification Issues:1. Interpretation of classification under Chapter 48 and Chapter 49 for printed materials.2. Clubbing of clearances under Notification No. 175/86.3. Examination of products made on job work basis.4. Unity of two appellant units.Interpretation of Classification under Chapter 48 and Chapter 49:The case involved determining the classification of printed materials under Chapter 48 or Chapter 49. The Tribunal analyzed Chapter Note XI of Chapter 48, stating that if the printing is incidental to the primary use of the goods, the paper falls under Chapter 48; otherwise, it falls under Chapter 49. Referring to previous judgments, the Tribunal highlighted that the nature of printing determines the classification. Notably, the judgment in the case of Ajanta Prints Arts and Fitrite Packers influenced the decision, emphasizing that specific motives or designs on printed materials could lead to classification under Chapter 49.Clubbing of Clearances under Notification No. 175/86:The issue of clubbing clearances under Notification No. 175/86 was raised, alleging that two units were actually one entity exceeding the clearance limit. The Commissioner confirmed the demand, holding that the clearances should be clubbed, and job work should be classified under sub-heading 4811.90. However, the Tribunal disagreed, stating that the printed sheets on job work basis were rightly classifiable under Chapter 49. This decision was based on the specific details of the printing, such as trade names and trademarks, leading to the conclusion that duty was not evaded.Examination of Products Made on Job Work Basis:The Tribunal scrutinized the products made on job work basis, considering samples presented during the proceedings. The classification of these products was crucial, with the Tribunal emphasizing that the nature of printing determines the appropriate classification under Chapter 48 or Chapter 49. The Commissioner's order lacked a detailed examination of the products, prompting the Tribunal to assess the marketability and excisability of the goods to determine the correct classification.Unity of Two Appellant Units:The unity of the two appellant units was questioned, with arguments presented regarding the value of printed sheets on job work basis affecting the clubbing of clearances. The Tribunal decided that the classification under Chapter 49 resolved the issue, setting aside the impugned order and remanding the proceedings to the Commissioner for further evaluation. The Tribunal left the issue of clubbing open, depending on the Commissioner's findings after recalculating the values based on the revised classification.This comprehensive analysis of the legal judgment from the Appellate Tribunal CEGAT, Mumbai, delves into the intricate details of the issues involved, providing a thorough examination of the classification, clubbing of clearances, examination of products, and the unity of the appellant units.