TaxTMI 
TaxTMI 
2018 (10) TMI 746
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....ned officer i.e. Assistant Commissioner of State Taxes, Jalandhar-2 have been sought. The concerned officer vide his letter dated 17- 05-2018 stated that the products supplied by the Tax Applicant are to be covered under chapter 4901 and not under 4820 in light of Circular No. 1052/01/2017-CX dated 23-02- 2017 and Circular No. 1057/06/2017-CX. A personal hearing of the applicant in this regard was held on 16.07.2018 before the Advance Ruling Authority, Punjab on which date Sh. Naresh Chawla, Advocate appeared on behalf of the applicant. The questions raised by the applicant have been discussed at length. The counsel for the dealer had submitted a detailed written submission, which is reproduced as under. Written submissions & synopsis by the Applicant in respect of application for Advance Ruling 1. The applicant industry is manufacturing the Lab Manuals called "Books" printed/published in accordance with the specified syllabus issued by CBSE for class VI to class XII which is written by the authors as per prescription by Educational Boards. It comprises of the entire syllabus of the practical subject described and consists of the comprehensive study material covering syllabus....
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....industry it has been categorically held that: "The note book containing some text, question/answer & spaces for exercise has been classified under the heading 4901" As per rule 4 of general rule for interpretation of the schedule, goods must be classified under the heading appropriate to the goods to which they are most akin. 5. Circular no. 1057/06/2017-CX dt, 07.07.2017 has classified the printed work books, exercise book as follow:- 2. The issue has been examined. Exercise Books have been explained in HSN under explanatory note (2) to Heading 48.20 as, "These may simply contain sheets of lined paper but may also include printed examples of handwriting for copying in manuscript". Such exercise Books are specifically classified under heading 4820 of the erstwhile CETA, 1985. These are nothing but stationary items having blank pages with lines for writing and may also include printed texts for copying manually In common parlance they are more akin to handwriting "note books" for practicing rather than "work books" containing printed exercises. This definition of Exercise Books is in harmony with other items specified under Chapter Heading 4820 of erstwhile CETA, 1985 su....
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....h Court of Delhi. It was claimed by the petitioner that the said goods are appropriately classifiable in Chapter 49 of the Central Excise Tariff Act, whereas the department was considering classification as exercise books in Chapter 48 (4820) of Central Excise Tariff Act. The Hon'ble High Court of Delhi vide order dated 31.08.2016 = 2016 (9) TMI 323 - DELHI HIGH COURT had directed CBEC to examine the matter and pass appropriate order. Accordingly, CBEC has clarified the issue vide Circular No. 1057/6/2017 - CX dated 07.07.2017. The goods covered under the relevant headings have been distinguished by Circular No. 1057/6/2017 - CX dated 07.07.2017. The guiding principle for classification has also been laid down. From the above, it is observed that the relevant headings 49.01 cover generally the following goods: Heading 49.01: This heading generally covers textual reading material/books including text- books, catalogues, prayer books etc. The heading 49.01 specifically covers educational workbooks or writing books. In the case of certain goods of heading 49.01 e.g. workbooks, there may be space for writing in addition to the printed text but printing is of primary use and....
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....he primary use i.e writing in which cases the goods have been held classified under the chapter heading 4820, In the present case, perusal of sample lab manual supplied by the applicant, who has been described above, clearly shows that printing is not merely incidental to the primary use, but actually forms a major part of the book and fulfills the primary objective of imparting knowledge to the student. Rather writing becomes the incidental part in the case on hand as the blank pages providing space to the students to write form a lesser part of the Lab manual and enables the students to write in the context of what they have learnt in the major printed instructional material of the book. Hence it becomes clear after balancing the facts of the present case with the instructions related to classification given in the said Circular dated 07.07.2017, that the Lab Manuals being published by the applicant are rightly classifiable under the GST Tariff heading 4901 as 'printed books' and would consequently carry Nil rate of tax which is presently applicable to the said heading. 4. It is further seen that a similar clarification relating to classification of practical notebooks had als....