TaxTMI 
TaxTMI 
2018 (1) TMI 1086
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.... appeal is by partner of the main appellant, against imposition of penalty. The dispute in the present appeal mainly relates to classification of various products manufactured and cleared by the main appellant during the period November, 2008 to October, 2013. Details of products, disputed tariff classifications with applicable duty demand are as below: S.No. Item Appellant's Classification Department's Classification Total amount 1. Envelope/Outer/jacket/Sim sleeve or Pouch 4817 10 00 4819 50 90 Rs.84,06,512/- 2. Forms 4911 99 90 4820 10 90 Rs.40,12,751/- 3. Start-up Kit(SUK)/Kit 4911 99 90 4819 50 90 / 4820 10 90 Rs.21,96,278/- 4. Carry bags 4911 10 90 4819 40 40 Rs.48,362/- 5. Pads 4820 10 90 4820 10 90 Rs.3....
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....TH 4819 50 90. The appellant claimed classification under CETH 4817 10 00/4911 99 90. The classifications as per the tariff entries are as below: 4817 Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard, boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery 4817 10 00 - Envelopes 4819 Cartons, boxes, cases, bags and other packing containers of paper, paperboard, cellulose wadding or webs of cellulose fibres, box files, letter trays and similar articles, of paper or paperboard of a kind used in offices, shops or the like. 4819 10 - Cartons, boxes and cases of corrugated paper or paperboard: 4819 10 10 --- Boxes ....
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....r containing particular type of contents. To call these small size envelopes made of paper, as other packing containers, is not appealing. The very nature of the product in the form of envelope is more specific than categorizing it as a general packing container. These are generic terms and common understanding of such terms can be inferred from standard dictionaries. Oxford dictionary of English defines envelope as "a flat paper container with a sealable flap, used to enclose a letter or document." It is clear that an envelope is a sub-species of a general category of containers. When there is a specific entry for paper envelopes, we find it is not tenable to classify it under the broad category of "cartons, boxes, cases, bags and other pa....
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....incidental. In view of explanatory note to heading 4901 and 4911, these forms are classifiable under heading 4911. We find that the clarification issued by the Board correctly explains the legal position and accordingly, the impugned order classifying the forms under chapter 48 is not sustainable. 7. Carry Bags The appellant cleared some products as "carry bags" to M/s Britannia Industry, M/s Nestle India Limited, etc. These packs were for carrying grocery items. The Revenue held that these are to be classified under heading 4819 40 00 as "other sacks and bags including cores." The appellant contended that these are to be classified under heading 4911 10 90 as other printed matter. We have perused the samples presented by the ld Counsel ....
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....28 90 69. We note these hangers are custom made and cannot be used for any other purpose except for display and hanging of the products, the details of which were printed on them. The Tribunal in M/s Ajanta Print Arts-1998 (98) ELT 406 (Tribunal), examining similar set of facts, held that printing is not incidental or ancillary but has been done with an intention to advertise the product which were hung in the said hangers. Accordingly, it was held chapter 49 will be more appropriate for classification. Similar decision was followed in M/s New Jack Printing Works Pvt Ltd-1999 (195) ELT (440). Accordingly, we hold that the claim of the appellant for classification under chapter 49 is correct. 10. Printed sheet/printed matter We note that n....