TaxTMI 
TaxTMI 
2026 (1) TMI 1282
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....ng the appropriate duty on clearances made to M/s. Bharti Airtel Limited, Bangalore. Accordingly, it was proposed to recover duty of Rs.7,73,822/- along with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Aggrieved by the said order, they filed appeal before the learned Commissioner(Appeals) who in turn rejected their appeal. Hence, the present appeal. 3.1. At the outset, the learned advocate for the appellant has submitted that the appellant is engaged in the manufacture of Manifold Business Forms and carrying out the activity of printing on the paper supplied by the customers. On the issue of valuation, the duty of Rs.1,04,192/- with interest has already been paid, which they are not disputing in the present appeal; however, against the demand of the balance amount relating to their printing activity on Government of Karnataka Watermarked Paper meant to be used for issuing RTC [Record of Rights, Tenancy and Crops], the present appeal has been filed. He has submitted that the Department has demanded excise duty by wrongly classifying the product under heading 48204000 of Central Excise Tariff Act, 1985. He has submitted that the appel....
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....i. Motorola (India) Pvt. Ltd. Vs. CCE, Bangalore [2010(261) ELT 165 (Tri. Bang.)] ii. Gujarat Ambuja Cement Vs. CCE, Rajkot [1996(85) ELT 154 (Tri.)] 3.5. Further, referring to Board's Circular No.1052/1/2017-CX dated 23.02.2017, he has submitted that the product in question are classifiable as product of printing industry and since they are not liable to discharge any duty, imposition of penalty is also unwarranted. 4. Learned AR for the Revenue has reiterated the findings of the learned Commissioner(Appeals). Referring to the judgment of the Karnataka High Court in the case of Manipal Technologies Ltd. Vs. State of Karnataka [2022(62) GSTL 299 (Kar.)], he has submitted that Pattadar Pass Book and title deed merit classification under Tariff Entry 4820 and GST is to be paid @ 18% and not @ 12%.; hence, the product is dutiable. 5. Heard both sides and perused the records. 6. The limited issue involved in the present appeal for consideration is whether the activity of printing on Government of Karnataka Watermarked Paper used for issuance of RTC attracts duty under Tariff entry 4820 40 00 of the Central Excise Tariff Act, 1985 or fall under Chapter sub-heading 4....
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....ng the principle laid down by the Hon'ble Supreme Court; also a recent Circular issued by the Board to set at rest the disputes on classification of the printed forms viz. rail tickets, cheques etc. between the competing Chapters 48 and 49 of CETA, 1985. 9. We find that this Tribunal in a series of judgment like Big Bags International Pvt. Ltd., Lakshmi Packaging (P) Ltd., Chromaprint (India) Pvt. Ltd., referring to the judgment of the Hon'ble Supreme Court in the case of UOI Vs. JJ Glass Industries Ltd. [1998(97) ELT 5 (SC)] observed that the process of printing is not manufacturing activity and would not invite levy of excise duty. On the issue of classification, we find that the Circular bearing No.1052/1/2017-CX dated 23.02.2017 is issued to address the dispute on classification of various printed forms between the competing entries of Chapter 48 and 49 of CETA, 1985. The said circular is reproduced below: Paper and Printing Industry - Classification [Chapters 48/49] Circular No. 1052/1/2017-CX, dated 23-2-2017 F.No. 116/29/2015-CX.3 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise &....
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.... questions or exercises not incidental to their primary use as workbooks and usually with spaces for completion in manuscript. Further, as per HSN explanatory notes (A) to heading 4901, "...literary works of all kinds, textbooks (including educational workbooks sometimes called writing books) with or without narrative texts which contain questions or exercises (usually with spaces for completion in manuscript); technical publications...." are classifiable under this heading. (g) Also, as per HSN explanatory notes to heading 49.01 printed cards bearing personal greetings, messages or announcements (heading 49.09), and printed forms which require the insertion of certain additional information for completion are excluded from this heading. (h) As per explanatory notes to heading 4907 (F), "Stock, share or bond certificates and similar documents of title are formal documents issued, or for issue, by public or private bodies conferring ownership of, or entitlements to, certain financial interests, goods or benefits named therein. Apart from the certificates mentioned these documents include letters of credit, bills of exchange, travelers' cheques, bills of lading, tit....
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.... the matter. The printing on these documents gives their essential character and on being issued (after completion and validation) by the appropriate authority they have fiduciary value in excess of the intrinsic value. In view of explanatory notes to heading 4907 (F) they are classifiable under heading 4907. (c) OMR sheets - Like mark sheets and certificates these are loose sheets cut to size and therefore are not covered under heading 4820 and also provision of Chapter note 14 is inapplicable in the matter. The printing on these documents gives their essential character. In view of explanatory note to heading 4911 they are classifiable under heading 4911. (d) Answer books with or without OMR, answer booklets and passbooks - These are not loose sheets, cut to size and therefore these are not out of the purview of heading 4820. Printing on these goods is merely incidental and such goods are intended to be used for further printing or writing. Answer books with or without OMR and answer booklets are intended for completion in manuscript while passbooks are intended for completion in manuscript or typescript. Provisions of Chapter note 12 and 14 of Chapter 48 and pr....
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.... receipts is not merely incidental. In view of Rule 3(c) of General Rule for the interpretation of the Schedule, Hon'ble Apex Court decision in the case of Holostick India Ltd. ibid and explanatory notes to heading 4907(F), these are classifiable under heading 4907. (i) Practical notebook - This notebook contains some texts, questions and spaces for exercises. In view of explanatory notes to heading 4820 and explanatory notes (A) to heading 4901, this is classifiable under heading 4901. However, practical notebook which have merely certain questions followed by blank spaces for writing are classifiable under heading 4820 only. 5. Field formations may be suitably informed. Past instructions and circulars on the subject shall stand amended to the extent of conflict with the above circular. Hindi version would follow. 10. We find that the Tribunal in the case of Nagpur Business Forms Pvt. Ltd. Vs. CCE, Nagpur (supra) referring to the said circular held that classification of the rail tickets, cheques etc. should be in accordance with the circular issued by the Board. Applying the said circular to the facts of the present case where the appellant is required to pri....