TMI Blog2011 (2) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... thereby penalty under Section 11AC of Central Excise Act, 1944. Further, from the fact that the issue has to be elaborately discussed by us to come to the conclusion that products are classifiable in CETH 48.20 would also show that if the appellant entertained a view that the goods were not excisable, the benefit of doubt should go to them - The appeal is disposed of - E/343/2009 - A/223/2011-WZB/AHD - Dated:- 4-2-2011 - Ms. Archana Wadhwa, Shri B.S.V. Murthy, JJ. REPRESENTED BY : Shri P.M. Dave, Advocate, for the Appellant. Shri R.S. Sangia, SDR, for the Respondent. [Order per : B.S.V. Murthy, Member (T)]. The appellant is engaged in the work of printing and during the visit on the basis of intelligence, it was found that the appellants were manufacturing and clearing printed articles of stationery such as bank slip books, BSNL forms, application forms and receipts of educational institutions, receipt book in respect of various customers, progress reports of children in school, certificate, cash memo, school leaving certificates, stickers etc. A show cause notice was issued proposing to classifying these items under Chapter Heading 48.20 of Schedule to Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned SDR reiterated the observations and the logic adopted by the original adjudicating authority and submitted that the impugned order is legally appropriate. 4. Before we proceed further to consider the merits, it would be appropriate to reproduce the competiting entries of Chapter Headings 48.20 and 49.11. The Chapter Heading 48.20 in HSN reads as under : 4820 Registers, account books, note books, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, excise books, blotting- pads, binders (loose-leaf or other), folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paper-board; albums for samples or for collection and book covers, of paper or paperboard. 4820 10 Registers, account books, note books, order books, receipt books, letter pads, memorandum pads, diaries and similar articles : Kg. 16% 4820 10 10 Registers, account books Kg. 16% 4820 10 20 Letter pads Kg. 16% 4820 10 90 Other Kg. 16% 4820 20 00 Exercise books Kg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... most manifold business forms are held together by means of a glued and perforated stub. (6) Albums for samples or for collections (e.g. stamp, photograph). (7) Other stationery such as blotting-pads (folding or not). 6. Chapter note under 49.11 is also required to be produced since these notes support the view taken by us above. This heading covers all printed matter (including photographs and printed pictures) of this Chapter (see the General Explanatory Note above) but not more particularly covered by any of the preceding headings of the Chapter. In the case of framed pictures and photographs, frames which are of a kind and of a value normal to the pictures or photographs are regarded as forming part of picture or photograph and the whole is classified in this heading; in other cases the frames fall to be classified under their appropriate heading as articles of wood, metal etc. Certain articles may be intended for completion in manuscript but remain in this heading provided they are essentially printed matter. Thus, printed forms, circular letters, and similar articles printed with messages, notices, etc., but requiring the insertion in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in colour, of one or of several plates wholly executed by hand by the artist, irrespective of the process or of the material employed by him, but not including any mechanical or photo-mechanical process.) 7. The General chapter note under Chapter 49 in Central Excise Tariff reads as under : With the few exceptions referred to below, this Chapter covers all printed matter of which the essential nature and use is determined by the fact of its being printed with motifs, characters or pictorial representations. On the other hand, besides the goods of heading 48.14 or 48.21, paper, paperboard or cellulose wadding, or articles thereof, in which the printing is merely incidental to their primary use (e.g., printed wrapping paper and printed stationery) fall in Chapter 48. Also, printed textile articles such as scarves or handkerchiefs, in which the printing is mainly for decorative or novelty purposes and does not affect the essential character of the goods, embroidery fabrics and prepared tapestry canvases bearing printed design fall in Section XI. Goods of heading 39.18, 39.19, 48.14 or 48.21 are also excluded from this Chapter, even if they are printed with motifs, characters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting copy printed on each page. Some other articles may be printed with characters, etc., merely incidental to their use. The goods of this heading may be bound with materials other than paper (e.g. leather, plastics or textile material) and have reinforcements or fittings of metal, plastics etc. On the other hand, articles such as desk memo-blocks consisting essentially of wood, marble, etc., are classified as manufactures of wood, marble, etc., as the case may be. Loose sheets of exercise paper and other writing paper, including perforated sheets for loose-leaf books, fall generally in heading 48.23. Loose leaf sheets for albums are excluded from this heading and fall in other headings according to their characteristics. The heading excludes cheque books (heading 49.07) 9. The articles and products identified under CH 48.20 in HSN would show that they are in the nature of pre-printed stationery. This becomes clear from the sentence all articles of this heading sometimes contain a considerable amount of printed matter but are classifiable under this heading provided that articles are essentially for completion in manuscript or type-script. From this sentence, it becomes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stationery. As regards the form and receipt of educational institutions, the form contains the details of pupils, details of homework etc. to be filled, admission form, school leaving certificate etc. These are all in the nature of pre-printed stationery and details are to be filled in by the concerned person. Therefore, they are rightly held to be classifiable under CETH 48.20 and receipt book is clearly covered under 48.20 and just because name, address, Sales Tax registration number etc. are printed, it cannot go out of 48.20. Other items such as slip books, forms, school leaving certificate, stickers etc. are all classifiable under 48.20 since we do not find that printing is not essential in these cases and all in the form of form which are required to be filled in. 11. In view of above discussion, on merits, the appellant has no case and the impugned order as regards classification of the products has to be upheld. 12. The next question is whether penalty under Section 11AC of Central Excise Act, 1944 is imposable on the ground of suppression/mis-declaration. In this case, in the show cause notice, the suppression was alleged in Para 6 as under : 6. In view of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of Central Excise Rules, 2002 inasmuch as they have failed to issue proper invoice in respect of the said goods cleared from their factory. Rule 12 of Central Excise Rules, 2002 inasmuch as they have failed to file returns. They have also contravened provisions of Rule 12 of Central Excise Rules, 2002 inasmuch as they have failed to file returns. All these acts of contravention on the part of the said assessee appears to have been committed by way of willful mis-statement, suppression of facts and deliberate contravention of the provisions of Central Excise Rules with an intention to evade the Central Excise duty and therefore, the duty involved in the said clearance of finished goods is required to be demanded and recovered from them under the proviso to Section 11A(1) of the Central Excise Act, 1944 which the said assessee has already paid. 14. In the impugned order, the learned Commissioner (Appeals) upheld the imposition of penalty and invocation of extended period, in Para 7.4 which is reproduced below : 7.4 I find that the appellant failed to obtain Central Excise registration, failed to determine/discharge duty liability and failed to pay the Central Excise duty and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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