2015 (9) TMI 467

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....Zonal Bench, Mumbai (hereinafter referred to as "CESTAT") holding that the product in question manufactured by the respondent-assessee which is known as `shrink sleeves' is classifiable under Chapter 39 Sub-heading 3020.19 and not under Sub-heading 4901.90 as contended by the Revenue. To state the facts in brief, the assessee is engaged in the manufacture of Plastics Laminated Flexible packing material and one of the products which is manufactured is `shrink sleeves' as pointed out above. The assessee had filed classification, classifying the said product under Sub-heading 3920.19. Under Chapter 39 the aforesaid product classified by the assessee pertains to "Plastics and articles thereof". Entry 3920.19 thereof is as under: "....

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....it is printing on the aforesaid product and, therefore, that is the predominant purpose which would make the product classifiable under the Sub-heading 4901.90 pertaining to printing industry. This argument was disapproved by the assessee with the statement that printing on the `shrink sleeves' is only incidental and not of primary use. According to the assessee the main purpose of the product is to provide tamper protection to the product inasmuch as it is shatter resistance, enhance puncture resistance and tamper proof packing. Learned counsel for the Revenue submits that it is not in dispute that it is the primary function of the product that would be the determinative test. In fact, the learned counsel has referred to the judgmen....

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....nd this serves a definite purpose. This Court in Rollatainers case held that 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". Let us apply this above formula to the facts of this case. The product' in this case is the aluminium printed label. The printing industry has brought the label into existence. That being the position and further the test of trade having understood this label as the product of printing industry, there is no difficulty in holding that the labels in question are not products of printing industry. It is true that all products on which some printing is don....

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.... than something merely incidental. We have already referred to the process hereinabove and the final product which emerges is a product which is used for security purposes. It is important to remember therefore, that the primary use of the product is security and not the quality of being adhesive. Here again, a simple example will suffice. Take an adhesive tape with a monogram printed upon it. The primary use of such tape is by virtue of its adhesiveness to bind and package containers in which goods are to be stored and transported. Obviously, in such an example, the printed monogram of such adhesive tape would be incidental to the primary use of the said goods - the adhesive tape. By way of contrast, in the present case, the factor of adhe....