1997 (2) TMI 114 - SC - Customs

Whether assessee entitled to the benefit of Notification No. 169/77-Cus. dated 6-8-1977 claiming that the blankets imported by them were for printing fabrics? Held that - Any amount of fancy printing on a carboard would not make it a carton. In the process of manufacturing the printed cartons the cardboard has to be cut printed creased and given the shape of a carton by using paste or gum. Simply because there are expensive prints on the carton it would not become a product of the printing industry. Judgment of Rollatainers Ltd. Anr. v. Union of India Ors. 1994 (7) TMI 86 - SUPREME COURT OF INDIA is a complete answer to the argument advanced by appellants. The Garden Silk Mills Ltd. produces fabrics. These fabrics may or may not be printed. If any printing is done the fabric will not cease to be fabric and Garden Silk Mills Ltd. will not cease to be a textile industry and become printing industry. The benefit of the notification will not be available to the appellants. Against assessee.

Summary

Issues: Interpretation of Notification No. 169/77-Cus. regarding exemption for rubber blankets in the printing industry.

The judgment revolves around the interpretation of Notification No. 169/77-Cus., dated 6-8-1977, which granted exemption for rubber blankets imported into India for use in the printing industry. The appellants claimed the exemption for Darey Concard Blankets imported for printing fabrics, contending that their use fell within the notification's terms. The Assistant Collector denied the exemption, stating the goods were for the textile industry, not printing. The Collector of Customs, on appeal, deemed the term 'printing industry' broad enough to include printing in textile mills. The Tribunal found the rubber blankets were used in textile printing units, distinct from printing presses, as they were not interchangeable. The key issue was whether the appellants' textile printing activities qualified as part of the 'printing industry' under the notification.

The notification specified that rubber blankets were exempt when imported for use in the printing industry. The Tribunal found the appellants were in the textile industry, and the imported blankets were not interchangeable with those used in printing presses for books or periodicals. The appellants argued that 'printing industry' should encompass various printing activities, including textile printing. They highlighted dictionary meanings to support their contention that textile printing should be considered part of the printing industry. They also referenced a subsequent notification expanding the scope of the original one.

The Court referenced a prior case involving the construction of a notification related to the printing industry. It emphasized that not all products with printing could be classified as products of the printing industry. The Court held that adding printing to a product did not automatically make it part of the printing industry. Applying this reasoning, the Court concluded that textile printing by the appellants did not transform them into a printing industry. The Court upheld the Tribunal's decision denying the appellants the benefit of the notification based on this interpretation.

The Court dismissed the appeal, stating that the benefit of the notification was not available to the appellants. It declined to comment on a subsequent notification's scope, as it was not relevant to the current case. The judgment's conclusion affirmed the Tribunal's decision and did not award costs to either party.