Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2023 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (12) TMI 305 - CESTAT MUMBAIClassification of finished goods - printed plastic sheets - to be classified under sub heading 3920 39 as ‘printed PVC sheets’ or as ‘products of printing industry’ corresponding to sub heading 4901 90 in Schedule to Central Excise Tariff Act, 1985? - HELD THAT:- The facts do not appear to be straightforward inasmuch as the submission of both sides appear to be at cross purposes. On the one hand, it is claimed by the appellant that they manufacture plain ‘plastic sheets’ which, upon clearance on payment of duty, are transferred to a group entity at the same premises for printing and, thereafter, sought to be cleared on payment of ‘nil’ duty applicable to goods corresponding to sub-heading 4901 90 of Schedule to Central Excise Tariff Act, 1985. On the other hand, this fine distinction remains unattended in the orders of lower authorities who have proceeded merely to hold that the finished goods are in conformity to the description corresponding to sub-heading 3920.39 of Schedule to Central Excise Tariff Act, 1985 with applicable rate of duty - In either situation of the last activity being undertaken by separate unit, or even by the same unit, legitimizing of clearance, as manufacture of ‘plastic sheets’ with attendant duty liability at the earlier stage, is implicit owing to submission of the appellant not having been challenged by the respondent-Commissioner herein. It is proceeded on the assumption that the duty had been discharged on plain ‘plastic sheets’ which are, thereafter, subject to further processing. The decision of the Hon’ble Supreme Court in re Caprihans India Ltd, [2015 (11) TMI 1170 - SUPREME COURT] for the earlier period, has held that the activity of ‘printing’ does not amount to ‘manufacture’ and, if such activity was sought to be charged to duty at the last stage, the proceedings would fail on that score. If, on the other hand, the appellant had not discharged duty liability on plain ‘plastic sheets’, then such liability will arise notwithstanding further processing into a non-dutiable item, owing to the decision rendered by the Hon’ble Supreme Court. The impugned order set aside - matter remanded back to the original authority - appeal disposed off.
|