TaxTMI 
TaxTMI 
2006 (5) TMI 357
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....ided the classification of advertisement materials, which are actually self-adhesive vinyl sheets on which printing is done. The Commissioner has held that these products would not fall under Chapter 3919. By virtue of Chapter Note 2 of Section VII, Revenue has filed an appeal against the above decision on the following grounds. (i) It is admitted by the assessee in his reply that the printing is done on self adhesive vinyl sheets which are classifiable under CH 3919. (ii) As per Chapter Notes 2 of Section VII of CETA - 'Except for the goods of heading No. 39.18 or 39.19, plastics, rubber and articles thereof printed with motifs, characters of pictorial representations, which are not mer....
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....he advertising material containing the images. After scanning and effecting suitable modifications in computer, the correct image is printed on the specially treated paper called Electrostatic Paper. The image in the Electrostatic Paper is then transferred to different sub-strates like Vinyl through the process of 'Thermo Copying'. The Commissioner, in the impugned order, holds that the above process amounts to manufacture but, the respondents challenged the above finding and said that the activity undertaken by the respondent does not amount to manufacture since the Vinyl remains as Vinyl both before and after the process of incorporation of the images. The following case-laws were relied on:- (a) Swastik P....
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.... Ltd. v. CCE & C, Baroda - 2001 (133) E.L.T. 610 = 2001 (97) E.C.R. 431 (Tribunal) (i) Classic Stripes Private Ltd. v. CCE, Mumbai-IV- 2001 (131) E.L.T. 281 (Tri.-Mumbai) (j) Tanzeem Screen Arts v. CCE, Mumbai-I - 2001 (131) E.L.T. 656 (Tri.-Mumbai) (iii) In the present case, the raw material is Vinyl. If the Vinyl is classifiable under CH 3921, then as per Note 2 to Section VII of the Central Excise Tariff, the articles printed with motifs and characteristics of pictorial representations, which are not merely incidental to primary use of the goods, would fall under Chapter 49. While coming to the above conclusion, the Commissioner, has taken into a....
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....order to appreciate the issue, we should examine Note 2 of Section VII, which is reproduced below:- "Except for the goods of heading No. 39.18 or 39.19, plastics, rubber and articles thereof, printed with motifs, characters of pictorial representations, which are not merely incidental to the primary use of the goods, fall in Chapter 49." On going through the above note, it is clear that the above note would not be applicable to goods of heading 39.18 or 39.19. It is seen from the records that in the present case, the raw material 'Vinyl' used for the manufacture of electrostatic prints, has been classified under CH 3921. In that case, Note 2 of Section VII would clearly be applicable and the final product would be covered under Chapte....