2019 (3) TMI 608

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....he appeal filed by the Department. The matter was therefore caused to be heard. 3.1 The facts of the matter are that the respondents were inter alia manufacturing thermal paper in rolls classifying the same under Central Excise Tariff Act (CETA) Heading 4901 9900 and clearing the same at nil rate of duty from April 2008 to March 2009 and April 2009 to August 2009; from September 2009 to December 2009, they paid an amount equal to 5% of the value of the printed thermal rolls which they considered as exempted goods vide Rule 6(3)(i) of the CENVAT Credit Rules (CCR), 2004. 3.2 The Department took the view that the assessee has misclassified their products. That the imported thermal paper classified under CETA 4811 9099 after undergoing the p....

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....the respondent are only ATM rolls of which the primary use is to print the user's account statements in the ATMs and printing of logo, name, address, etc., by the respondent is merely incidental to this primary use. Hence, the impugned goods are rightly classifiable as ATM rolls under CETA 4811; (ii) Ld. AR drew our attention to Chapter Note 12 of Chapter 48 of the Central Excise Tariff Act, wherein it is clearly indicated that except for goods under Heading 4814 or 4821, paper, paperboard, cellulose wadding and articles thereof, printed with motifs, characters or pictorial representations, which are not merely incidental to the primary use of the goods, fall in Chapter 49; (iii) CETA 4901 would cover only the goods which are in the natur....

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....etheless, the defining aspect for classification of such printed paper is provided in Chapter Note 12 of Chapter 48, as per which when such printing is "not merely incidental to the primary use of the goods", such goods will require to be confined to CETA 49. 7. The case law of M/s. Metagraphs Pvt. Ltd. (supra) dealt with printed aluminium labels for affixation to fridge, radio, etc. Discernibly, there is no further printing required to be done on such label and it is also evident that they can be considered away affixed to the fridge, radio, etc. So also, pre-printed lottery tickets, which is the subject matter of the decision in the case of M/s. Gopsons Papers Ltd. (supra), are evidently printed ready for use. The printing in both these ....

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.... contention that the classification of the disputed articles under Chapter 48 of the Customs Tariff Act, 1985 would be ruled out in terms of Note 8 to Chapter 48 on account of printing on the said items being not merely incidental to their primary use. We hold that on account of the primary use of the articles in question being in connection with the packaging of cigarettes and the printing there being merely incidental to their primary use that would be correctly classifiable under Chapter 48 of the Customs Tariff Act, 1985 and their classification under sub-heading 4901.90 as claimed by the applicants would be ruled out." 9. In view of our discussions hereinabove, we find the case in favour of the Revenue. The impugned Order of the Comm....