TaxTMI 
TaxTMI 
2018 (1) TMI 1086
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....es, carry bags, forms, etc. The second 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....
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....nsidered as paper bags since these are neither used for correspondence nor contain paper stationery. Accordingly, the classification was ordered to be made under CETH 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 sim....
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....pellant is in the form of envelope. We do not find any support to hold that an envelope should be necessarily used for correspondence or should contain paper stationery only. In the present case, the envelope is made of paper and is printed with details of the contents with certain designs. These are custom made for 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 ....
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.... note that the issue of classification of application forms was discussed and clarified by the Board vide circular dated 23.02.2017. It is clarified that forms of telecom companies, educational institutions, etc. are loose sheets cut-to-size and are not covered under heading 4820. Printing on these forms is not merely 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. T....
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....ard/plastic The appellants manufactured plastic hangers to display products for sale. These hangers were used for hanging small packs/satches of the displayed products for sales. The appellant claimed classification under heading 4911 10 90 as other printed matter. The Revenue classified the same either under 4823 70 30 or 3928 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 h....
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....e to printing of educational books. We note that in M/s Wimco Ltd-2008 TIOL (2769) Cestat-Delhi, the Tribunal held that the waste and scrap of paper/paper board arising during the course of manufacture of empty match boxes will not attract excise duty. The emergence of such waste and scrap from duty paid paper and paper board is not as a result of manufacturing activity and no excise duty leviable on such item. We note similar view has been held in M/s Panasonic Energy India Co. Ltd-2016 TIOL (3061) Cestat-Delhi. 12. We note that in the present case, the appellants are not engaged in the manufacture of paper or paper board. They are essentially engaged in producing various printed products. The products which they produced were variously....