TaxTMI 
TaxTMI 
2018 (9) TMI 453
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....d the same under 49011020 of the Schedule to CETA, 1985 and clearing the same at Nil rate of duty. On Scrutiny of ER-1 records for December 2006 to November 2007, the Revenue Officer observed that the classification claimed by the appellants is incorrect and the goods are liable to be classified under 49089000. 2. The appellants have submitted that the classification proposed by the Department was under 'Decalcomania Transfers' whereas the impugned goods are only 'Heat Transfers'. The OIO and OIA have failed to appreciate that 'Heat Transfer' is commercially different from 'Decalcomania Transfers' whereas the Decalcomania refers to a 'craze of decorating china ware or glass ware or metal ware'; in Decalcomania transfer inputs with the pa....
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.... appreciation of the issue, it is required to go through the relevant chapter notes and HSN notes. 5.1 Coming to the classification used by the appellants i.e. 49011020, we find that heading no. 49011020 of Central Excise Tariff Act refers to pamphlets, booklets, brochures, leaflets and similar printed matter. Apparently the impugned goods are 'Printed Heat Transfers' and do not fall under above heading by any stretch of imagination. We find that the appellants have conceded that point during the proceedings with the lower authorities. 5.2 The following is the description of headings under 4908: (i) 4908 - Transfers (decalcomanias) (ii) 49081000 - Transfers (decalcomanias), vitrifiable (iii) 49089000- Other.....
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....s as window transparencies which fall in heading 48.14 or 49.11. The heading also excludes transfer paper of the types known as stamping, foils or blocking foils, prepared with a coating of metal, metal powder or pigment and used for printing book covers, hat bands, etc. (heading 32.12). Other transfer papers, as used in lithographic work, fall in heading 48.09 or 48.16 as appropriate. 5.3 The heading for 4911 reads as under: (i) 4911 - Other printed matter, including printed pictures and photographs. (ii) 491110 - Trade advertising material, commercial catalogues and the like. (iii) 49111010 - Posters, printed. (iv) 49111020 - Commercial catalogues. (v) 49111030 - Printed inlay cards....
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....re classified in this heading. Stock, share or bond certificates and similar documents of title and cheque forms, which also require completion and validation, are, however, classified in heading 49.07. On the other hand, certain articles of stationery with printing which is merely incidental to their primary use for writing or typing are classified in Chapter 48(see Note 12 to Chapter 48 and in particular the Explanatory Notes to heading 48.17 and 48.20). 5.4 On perusal of the HSN notes for the heading 4911, it is seen that it refers to only printed matter (including printed pictures and photographs) neither the heading nor the HSN notes thereof refer anything closer to the 'Heat Transfers' that is the impugned goods manufactur....
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....er 48, and heat transfer papers are coated on one side with a thermo sensitive substance, for use in an infra-red copying machine to make a copy of an original documents by transferring a dye compounded with the coating substance on to a sheet of ordinary paper (heat transfer process same as in CCCN Explanatory Notes). The imported paper is used in the manufacture of heat transfer paper, which in turn, would transfer designs on to polyester fabric involving transfer of dyes. By the process involving application of heat and pressure on the paper is transferred to the fabric/garment. 5.7 We find that Commissioner (A) has rightly observed as follows: Transfer Printing - is a process for transferring a design from paper to fabric. U....
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....es is the report dated 17.03.2009 of the Principal, Government Institute of Textile Technology, Bangalore where emphasis is laid on the efficacy of the impugned goods as a more sophisticated and effective method of transfer printing is that of transferring a design intact by vaporizing it form paper to fabric. (iii) So is the report dated 10.03.2009 of Shri T.S. Shashidhara, S.J. Polytechnic, Bangalore wherein he has concluded that heat transfers are used in the textile industry for the decoration of fabrics/garments. 5.9 In this regard, it is useful to advert to the principles of Rules of interpretation of statutes wherein "where two or more words having similar meaning are grouped together in a statute, the word having general meani....