TaxTMI 
TaxTMI 
2015 (8) TMI 100
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....llector of Central Excise - 1996 (88) ELT 630 (SC) and also to consider Section Note 2 of Section VII of Central Excise Tariff Act. 3. The adjudicating authority in his denovo order dated 12.1.2002 accepted the classification under Heading 490190 as products of printing industry and dropped further proceedings. Revenue preferred appeal against the said adjudication order and the Commissioner (Appeals) allowed the Revenue's appeal and held that the goods are classifiable under 3920 and set aside the impugned order. Hence the present appeal. 4. Heard both sides. 5. Learned counsel for the appellant submits that the Larger Bench of the Hon'ble Supreme Court in the case of CCE, Bangalore Vs. Srikumar Agencies - 2009 (13) STR 3 (SC) in a batch of appeals remanded the matter to the Tribunal with a direction to examine the facts of each case and then decide the case on merits instead of relying on the decisions. Based on the Hon'ble Supreme Court's direction, the Tribunal in the case of Srikumar Agencies Vs. CCE has examined the issue on facts and allowed the batch of appeals vide Tribunal's Final Order Nos. 659 to 683/2011 dated 9.8.2011. That Section Note 2 of Section VII clearly exc....
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....ation No.55/1975-CE dt. 1/3/1975 applicable to the erstwhile tariff item 68 of the Central Excise Tariff. The Hon'ble Supreme Court held that the printed cartons are to be treated as products of packaging industry with the following findings:- "11. We agree with the reasoning and the conclusions reached by the Division Bench of the High Court. What is exempt under the Notification is the "Product" of the "Printing Industry". The "product" in this case is the carton. The Printing Industry by itself cannot bring the carton into existence. Any amount of fancy printing on a card-board would not make it a carton. In the process of manufacturing the printed cartons, the card-board has to be cut, printed, creased and given the shape of a carton by using paste or gum. Simply because there are expensive prints on the carton such a printed carton would not become the product of the Printing Industry. It shall remain the product of the Packaging Industry." In the present cases, we are dealing with classification of printed products where printing has been done on paper / polyethylene coated paper. Such printed papers could fall either under chapter 48 or 49. The chapter note under chapter 4....
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....the Department that the activities undertaken in the present cases would amount to manufacture, we accept the alternative submissions on behalf of the assessees that the products should be treated as products of printing industry. Therefore, on merits, we hold that the demands are not sustainable and accordingly set aside the demands of duty, interest and penalties." The above decision is squarely applicable to the present case as the issues are identical and the appellants are using duty paid PVC films for printing with logos, designs etc. which are cleared for use as wrapper for sewing threads. The product is already classifiable under Chapter 3920.30 of CETA, 1985. It is pertinent to state that the Section Note 2 of Section VII clearly excludes the products of the printing industry from Chapter 39. 8. Further, we find that the Hon'ble Supreme Court in the recent judgment in the case of Holostick India Ltd. Vs. Union of India (supra) settled the issue of what construes the products of printing industry classifiable under Chapter 4901 of CETA, 1985 and allowed the Civil Appeals filed by the assessee. Relevant paragraphs of Apex Court order are reproduced as under:- "8. We have ....
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....n into account to "reduce disputes on account of tariff classification". Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the HSN. This being the expressly acknowledged basis of the structure of Central Excise Tariff in the Act and the tariff classification made therein, in case of any doubt the HSN is a safe guide for ascertaining the true meaning of any expression used in the Act. The ISI Glossary of Terms has a different purpose and, therefore, the specific purpose of tariff classification for which the internationally accepted nomenclature in HSN has been adopted, for enacting the Central Excise Tariff Act, 1985, must be preferred, in case of any difference between the meaning of the expression given in the HSN and the meaning of that term given in the Glossary of Terms of the ISI." 18. When one goes to the HSN Explanatory Notes to 'other printed matter', Item No. 10 which has already been referred to hereinabove states that 'self adhesive printed stickers designed to be used, for example, for publicity, advertising or mere decoration, e.g. "comic stickers" and "window ....
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...., 48.14 or 48.21 are also excluded from this Chapter, even if they are printed with motifs, characters or pictorial representations, which are merely incidental to the primary use of the goods." For this reason "self-adhesive printed stickers designed to be used, for example, for publicity, advertising or mere decoration, eg. "comic stickers" and "window stickers" mention in HSN Notes below Heading 49.11 would not cover the products of Heading 39.19. In view of this, the decisions relied upon by the learned Advocate are not applicable to the facts of the present matters. In Holographic Security Marking Systems case the product involved was "stamping foils" falling under Heading 32.12 of the Tariff which was classified under Heading 49.01 after the hologram was printed thereon. The Tribunal observed that "until the product became transformed because of the printing of the material on it, it continued to be stamping foil..". In the present case even after printing, because of Note 2 to Section VII, the product continues to remain classified under Heading 39.19 of the Tariff. We thus hold the classification of the impugned product under Heading 39.19 of the Tariff." 23. It is clear t....