TaxTMI 
TaxTMI 
TaxTMI 
1993 (11) TMI 130
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....hem was not for the said unit in respect of which exemption was claimed. They were, therefore, informed to take out a Central Excise licence immediately. From the declaration filed by the assessee, it was observed that Mrs. Tara Sarup and Mr. Arun Sarup were common Directors in both the companies, viz. M/s. Syn Pack P. Ltd. and also in M/s Amar Tara Ltd. M/s Amar Tara Ltd. had classified their product, viz. P.V.C. Self-Adhesive Papers under sub-heading 3919.00 of the Central Excise Tariff Act, 1985 whereas in case of M/s. Syn Pack P. Ltd., the same product was classified as falling under sub-heading 3926.90. This showed that the Directors were well aware of the fact that printed P.V.C. Self-Adhesive Tapes were properly classifiable under sub-heading No. 3919.00 attracting duty @ 25% Adv. As regards printed Self- Adhesive paper labels manufactured by them, they had declared the said product as falling under sub-heading No. 4821.00 and claimed an exemption under Notification No. 228/86 dated 3-4-1986 as amended. The said Notification No. 228/86 dated 3-4-1986 grants exemption from duty to paper labels whether or not printed and not to printed self-adhesive paper labels. Since the va....
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....t sustainable as the assessee company manufactured "self-adhesive printed paper labels" which is not covered by above exemption notification. I find that the products, viz. printed self-adhesive P.V.C. tapes, self adhesive plastic labels and self adhesive printed paper laminated with plastics have been declared by M/s. Amartara Ltd. under Chapter sub-heading No. 3919.00 and paying Central Excise duty at appropriate rate. Mr. Arun Sarup and Mrs. Tara Sarup are common Directors in both the companies. Thus, I find that M/s. Syn Pack Pvt. Ltd., Bombay were aware of the correct classification of their products and they resorted to mis-declaration, wilful mis-statement in respect of their products with an intent to evade payment of Central Excise duty. Thus, the charges of wilful mis-statement, mis-declaration on the part of the assessee company are proved. Further, as regards the exemption under Notification No. 175/86 dated 1-3-1986, claimed by the assessee, it can be seen that M/s. Syn Pack P. Ltd., was registered as Small Scale Industrial Unit in respect of their factory situated at 19, 20, 21A Building, Ansa Industrial Estate, Saki Vihar Road, Bombay-400072. On going through the c....
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....t with the amendment to Section 11A(1) w.e.f. 27-12-1985, notice alleging suppression and mis-statement has to be issued only by the Collector and this statutory requirement does not get whittled down by the fact that the demand is made only for the normal period of six months and not the extended period. This view has also been expressed by the Tribunal in a later decision reported in 1992 (58) E.L.T. 108 in the case of Alcobex Metals. Following the ratio of the above decisions, we hold that the show cause notice dated 31-10-1988 is without jurisdiction. The appeal is, therefore, allowed on this count alone without going into the merits of the matter. [Order per : S.K. Bhatnagar, Vice President]. - With due respect to Hon'ble Member (Judicial) my views and orders are as follows :- 6.I observe that this case relates to three items (and not two) namely :- 1.Gummed Printed Paper Labels 2.Gummed Printed Paper Labels laminated on one side with plastic 3.Printed Self-adhesive P.V.C. tapes 7.This is evident from appeal memo as well as the Show Cause Notice. 8.According to Ld. Advocate a lot of correspondence was exchanged with Department as evident from the date-sheet filed by hi....
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....appellants. 16. The Ld. DR has reiterated the Departmental point of view. 17. I observe that the Supdt. of Central Excise vide his letter dated 9-10-1986 had informed the appellants that "with reference to your declaration, you are hereby permitted to avail the exemption under Notification No. 174/86 dated 1-3-1986 for the year 1986-87." Again Asstt. Collector, Bombay vide his letter dated 23rd March, 1987 had intimated that "It is reported by the Asstt. Collector of Central Excise having jurisdiction over your unit that your unit is exempted from payment of Central Excise duty by virtue of relevant exemption notification issued by the Govt. of India" and allotted the Code Number. 18. In this connection, the appellants had drawn attention to their letter dated 15-4-1987 claiming exemption from Licensing Control for the year 1987-88. In this application printing of Self-adhesive paper labels and P.V.C. Tapes have been mentioned and subject Heading 4901.90 has been indicated. 19. I also observe that the appellants had filed a declaration under Notification No. 174/86 claiming exemption from Licensing Control vide their letter dated 3-5-1988. This letter encloses one pro....
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.... numerical order in the Schedule. 8. Except for the articles of heading No. 48.14 or paper labels of heading No. 48.18 paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the articles fall in Chapter 49." Further Notification No. 228/86 describes :- S. No. Heading No. or sub-heading Description of goods Rate Condition 13. 4818.90 Paper labels, whether or not printed. Nil 27. In view of the above position, it is evident that paper labels whether gummed, printed or otherwise would fall under Heading 43.18 unless it could be shown that printing was not merely incidental to the primary use of the article. 28. In other words, the act of printing design by itself does not take out "other paper or articles of paper" out of the purview of Chapter 48 unless it could be shown that primary use of the article was as printed product of the type falling under Chapter 49. 29. This view is also supported by the fact that other entries in the Chapter which were concerned with printed labels paper or paper board or printed articles of pa....