TaxTMI 
TaxTMI 
2022 (2) TMI 599
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....olved in the present case is whether the appellant is liable to pay duty on clearances of printed base papers/printed decorative paper in rolls and that too by classifying the same under CETH 4811 90 99 or not. The brief facts of the case are that the base paper was received by the appellant in roll form from their principals. The appellant was merely carrying out printing activity thereon, while clearing the same to their principals. Such printed paper is to be used in production of decorative laminate sheets/MDF boards etc. The department is of the view that after receipt of base paper, since the appellant prints the same and returns to the principals, the said goods may be classified under CETH 4811 90 99 and not under CETH 4911 99 90. A....
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....paper is used for 'printing' thereon and no one will use such plain paper for making decorative laminate sheets/MDF boards etc. at all. However, once requisite customer specific printing is carried out, the primary use of paper changes and the printed paper has an altogether to be different for use. He submits that in the similar circumstances, it was held that the printed product was classifiable under Chapter 49 and not under Chapter 48 (in some case Chapter 39). He placed reliance on the following judgments in the support of this contention Gopsons Papers Ltd. - 2015 (324) E.L.T. 5 (S.C.), Kayen Print Process (P) Ltd. - 2007 (213) E.L.T. 355 (Tri.-Bang.), Holostick India Ltd. - 2015 (318) E.L.T. 529 (S.C.) and C.B.E. & C. Circular No. 10....
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....is payable on end product and in other hand, if the printing is merely incidental to primary use of paper, and as per specific findings in the impugned order, paper can be used to make decorative laminate sheets/MDF boards etc. even without such printing as well, then such printing is so insignificant to the product, i.e. printed paper and the process of printing undertaken by the appellant will never amount to manufacture within the meaning of Section 2(f) of Central Excise Act, 1944 and hence, there is no question of paying any duty thereon anyway, therefore, under both circumstances, the duty is not liable. 5. He submits that the appellant had undertaken the job work for principals who were exempt from duty payment (presumable being SSI....
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.... on behalf of the Revenue submits that Appellant is engaged in decorative printing on base paper. The Printing is done on Jumbo Rolls as per design and specification of customers . The Printing, therefore is not merely a value addition but has now transformed the general base paper to a special base paper. Thus, end use has positively changed as a result of printing process undertaken by the appellant. Therefore, the process of aforesaid particular kind of printing has resulted into a product, i.e. paper with distinct character and use of its own which it did not bear earlier. Revenue relies upon the decisions in the matter of M/s Fitrite Packers [2005(324)ELT 625(SC)], M/s Parle Biscuits Pvt. Ltd. [2016 (339)ELT132(T.Chan)] and M/s Paper P....
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....ppellant is in the nature of coloration, decorative and repetitive design printing, in view of HSN note it is clearly excluded from the scope of chapter 49. Therefore, the items which are specifically excluded from the scope of Chapter 49, cannot be classified under the said chapter. The Chapter heading of the input base paper is 48 which is subsequently used in the manufacturing of decorative lamination falling under Chapter 48 and thus is duly covered within it. 11. He further submits that combined reading of Heading 4811 along with explanatory Notes of HSN to Chapter 48 and 49, it is apparent that heading 49119990 does not cover printed paper which is surface coloured, surface decorative or repetitive design printed, therefore, the same....