TMI Blog1992 (10) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... he Patna unit of AJ of which M/s. Shashwat Printers are the proprietors, the same are entitled to exemption under Notification 103/89-Cus., dated 1-3-1989 and they should be held to be a newspaper establishment duly registered with the Registrar of Newspapers for India on the basis of documents produced with the appeal. 3. In the Cross Objections filed by the respondents the claim has been contested on the ground that the fact of transfer of ownership had not been mentioned in the Registration Certificate issued by the Registrar of Newspapers; the appellants who had imported the goods were only printers and publishers and could not be considered as a newspaper establishment for purposes of the exemption notification. 4. An application for producing additional evidence was moved by the appellants under Rule 23 of the CEGAT (Procedure) Rules, 1982. The evidence consisted mainly of documents to support the ground in the appeal that the ownership of the Patna Unit of the newspaper AJ had been transferred to the appellants in July 1982 and the appellants are also the printers and publishers of the newspaper of the Patna Unit. This application was allowed by the Tribunal on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and publishers of the newspaper. He also read from the Assessment Order of the Deputy Commissioner of Income-tax, Special Range, Varanasi for the year 1989-90 in respect of the appellants company and explained that the Profit Loss Account showed the income from the circulation of the newspaper as well as the expenditure on account of salaries to the Directors and employees. In view of these submissions, Shri Asthana stated that the finding of Collector (Appeals) that there was no evidence to show that all the expenses relating to the newspaper-salary of the editor, sub-editor, reporter and other connected staff working for the newspaper are entirely borne by the appellants was not correct. Since the Profit and Loss Account contains the details of such expenditure and also the circulation income, there could be no doubt that it was the appellants who were running the newspaper establishment and were entitled to the exemption in that capacity. He also submitted that in a case like this, the only newspaper establishment which can be registered with the Registrar of Newspapers is the printer and publisher and not the owner simplicitor even when the two were different. 8. Smt. Ana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wner in those cases in which the printer or publisher making the declaration is not the owner, Shri Asthana submitted that the importance of the printer and publisher was evident since the declaration had still to be given by them and not by the owner. 13. We have carefully considered the appeal, the submissions made at the hearing and have perused the records. It would be useful to reproduce the Notification for a proper appreciation of the point in dispute. Chapter Photographic and 37.10 37 cinematographic goods Effective rate of duty for specified inputs for the newspaper industry. -In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods specified in the Table hereto annexed, when imported into India, by a newspaper establishment registered with the Registrar of Newspapers for India, appointed under Section 19A of the Press and Registration of Books Act, 1867 (25 of 1867) from so much of that portion of the duty of customs leviable thereon which is specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... PAPERS FOR INDIA 16. Thus, what is registered under the Act is the newspaper although the names, nationality and addresses of the publisher, printer and editor are also incorporated in the certificate. In fact, this appears to have been done in pursuance of Section 19B of the Act. There is no dispute that the Ranchi edition of newspaper AJ is registered with the Registrar of Newspapers. In the Certificate of Registration, the name of Shri Beni Madhab Chatterji along with the name of M/s. Shashwat Printers (Pvt.) Ltd. - the appellants before us - is indicated as the address of the printer and the publisher. Even in Column (9) and (10) of the Certificate as the premises where printing is done and the place of publication, the name of the appellants is shown. In the declaration made under Section 5 too, the name of Shri Bern Madhab Chatterji is shown as the printer and publisher of AJ to be printed at Shashwat Printers Pvt. Ltd. Ranchi and published by Shashwat Printers Pvt. Ltd, Ranchi. 17. A careful reading of the provisions of the PRB Act will show that although the registration is of the newspaper, it is intimately connected with the printer and publisher and among ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting of the newspaper in a printing press and its publication for final circulation. It involves basically (a) the owner of the newspaper who sets up the establishment and includes (b) the editor, news reporters and correspondents (c) the printing press and (d) the publisher. Unless each of these work together as part of a common establishment, the newspaper cannot be brought out. If they constitute the newspaper establishment they must be inseparable parts of it and the concept of the printing press not being a part or the publishing arrangement not being a part of that establishment would militate against the concept of the newspaper establishment. Therefore, the only thing which can bind them together would be the concept of ownership because it is only then that they would be part of a common establishment. If all are not parts of that establishment, it cannot be said that they constitute a newspaper establishment. The word establishment necessarily brings the concept of a group of people as part of a whole namely establishment. In this view of the matter, since the appellants are not part of a common establishment in the sense that they are not owned by the same person or bod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , dated 30-10-1985, which is as under :- 10. Owner s name: Title of the Newspaper owned by M/s. Jnanmandal Ltd. [managed by M/s Shashwat Printers (Pvt.) Ltd.] 22. He had submitted that besides being the printers and publishers of the newspaper, they were also managing it on behalf of the owner. They should, therefore, be regarded as constituting the newspaper establishment for purposes of the notification. We have examined the whole concept of what is a newspaper establishment and do not consider that, being a private limited company as stated in the Assessment Order of the Deputy Commissioner of Income-tax engaged in printing and publishing of the newspaper and having an identity distinct from that of the newspaper, the appellants can be treated as newspaper establishment . In this view of the matter too, the subject goods imported by the appellants are not entitled for exemption. 23. Although the Press and Registration of Books Act does not define the expression newspaper establishment , a definition is given in the Working Journalists and Other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955 in Section 2(d); newspaper establish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stered with the Registrar of Newspaper of India. In my humble opinion, both the conditions have been fulfilled in this case. The notification reads Effective rate of duty for specified inputs for the newspaper industry . It follows that the notification has been designed to the newspaper industry and in that view of the matter, the newspaper is required to be registered with the Registrar of Newspapers. As can be noted from the Press and Registration of Books Act, 1867, provision has been made for the registration of the newspaper . Newspaper is defined in Section 2(b) of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions, Act, 1955 as - (b) newspaper mean any printed periodical work containing public news or comments on public news and includes such other class of printed, periodical work as may, from time to time, be notified in this behalf by the Central Govt. in the Official Gazette . The definition of newspaper , paper and Printing as given in the Press and Registration of Books Act, 1867 in Part I interpretative clause are as follows: Newspaper means any printed periodical work containing public new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at...... And this last blank shall be filled up with a true and precise description of the place where such press may be situated. (2) As often as the place where a press is kept is changed, a new declaration shall be necessary - provided that where the change is for a period not exceeding sixty days and the place where the press is kept after the change is within the local jurisdiction of the Magistrate referred to in sub-section (1), no new declaration shall be necessary if - (a) statement relating to the change is furnished to the said Magistrate within twenty- four hours thereof; and (b) the keeper of the press continues to be the same:" Section 3 states that the Name of the printer and the place of printing and (if the book or paper be published) the name of the publisher and the place of publication is required to be printed in every book and paper printed in India. Section 4 lays down that keeper of printing press to make declaration. Sub-section (1) speaks of No person shall within India keep in his possession any press . Such person need not be owner. Persons other than owners can be in possession of a press by way of mortgage, lease etc. 30. Sub-section 5( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wspapers, text books or other books of general interest. The learned Member (Tech.) in para 31 has very correctly analysed the considerations that should weigh with the authority, as can be noted herein below - The question that remains to be answered is what then is the nature of evidence which would prove to the satisfaction of the authorities that the paper is intended for use for purposes specified in the notification. The considerations which can weigh with the authority can be one or more of the following types in asking for appropriate evidence - (a) Whether the buyer is a person of repute who has regularly been printing newspapers and text books or other books of gerneral nature; (b) Whether the buyer of paper is one who is engaged in using it in the printing of newspapers and text books or other books of general nature; (c) Whether the buyer has made such purchases in the past or has placed orders for supply of such paper from manufacturers of such paper; (d) Whether evidence of actual sale in the form such as invoice and other documents has been fulfilled; (e) if the transaction is not genuine; (f) Whether the authorities have received any complaints that p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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