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2019 (6) TMI 1019 - AT - Central ExciseClassification of goods - clearances of printed base papers/printed decorative paper in rolls - to be classified under CETH 4811 9099 or not? - 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 9099 and not under CETH 4911 9990 - HELD THAT:- The department has demanded duty with a view that the appellant have manufactured printed paper, however appellant have not manufactured paper, they have only carried out the process of printing. We find that the nature of printing carried out by the appellant does not alter the identity of the product as the paper remains as a paper only and mere printing does not amount to manufacture. In the present case also applying the ratio of Hon’ble Supreme Court judgment in M/S. SERVO-MED INDUSTRIES PVT. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, MUMBAI [2015 (5) TMI 292 - SUPREME COURT], the paper remained as paper, the printing process carried out only for use in the decorative laminate sheets/MDF Boards etc. However, after process of printing, the first product i.e. paper continue to be same as paper only, therefore, no manufacturing has taken place in the present case. Even if there is change in tariff heading, but there is significant change in the process and the said process does not amount to manufacture, merely change of tariff heading does not make product dutiable once again. This issue has been considered in the various judgments. Any printed paper if amount to manufacture, the same is correctly classifiable under chapter note 49 and the most appropriate Central Excise Tariff Heading shall be 49119990 which attracts nil rate of duty. On this plea of the appellant also, the demand is not sustainable. Thus whether the product is classifiable under chapter 48119099 or under 49119990 appellant is not liable to pay duty - appeal allowed - decided in favor of appellant.
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