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TMI Blog1992 (10) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for the 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 Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers 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. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 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 the First Schedule to the Customs Tar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the particulars essential for registration of the newspaper are the names, nationality and address of the printer and the publisher. The connection is so intimate that under Rule 4 it is necessary for the printer and the publisher to make a new declaration as often as they leave India for more than 90 days, of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... art 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 body which owns the newspaper, they cannot be said to belong to the newspaper establishment. In this sense the use of the expression newspaper establishment in the exemption notification would have the effect of restricting the exemption only to such printers and printing presses as are owned by the newspaper owner its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, 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 establishment means an establishment under the control of any person or body of persons, whether incorporated or not, for the production or publication of one or more newspapers or for conducting any news agency or syndicate". 24. Thus, even under an allied enactment for regulating the conditions of service of employees there is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 news or comments and public news; 'Paper' means any document, including a newspaper, other than a book; 'Printing' includes cyclostyling and printing by lithography." The preamble of this Act states that - "An Act for the regulation of printing presses and newspapers for the preservation of copies of books (and newspapers) printed in (I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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(2) also states "that the printers and the publisher of every newspaper shall appear". Therefore, the Act is for registration only of a person in possession of a newspaper and those persons who are printers and publishers and not of a newspaper establishment. Further, a printer or a Publisher need not be a 'owner' of such newspaper or newspaper establishm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 paper supplied to particular buyers has not been used in the printing of newspapers or text books or other books of general nature even though it was granted exemption from duty under the notification on the ground that it was intended for use for the specified purposes". 32. As can be seen from above, the question of ownership of newspaper, etc., was not rightl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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