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Commissioner of Central Excise, Vapi Versus M/s. The Paper Products Ltd.

2015 (9) TMI 467 - SUPREME COURT

Classification of shrink sleeves - classifiable under Sub-heading 3020.19 or Sub-heading 4901.90 - case of the assessee is that this product is to be treated as one falling under plastic industry - whether the product in question can be treated as that of printing industry or it is covered by plastic industry. - Held that:- we are clear in our mind that the printing was only incidental and the main purpose of the product is to provide tamper protection to the product to make shatter resistance, .....

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Nariman, JJ For the Petitioner : Mr. Jaideep Gupta, Sr. Adv., Ms. Nisha Bagchi, Adv., Mr. Subash Acharya, Adv., Ms. B. Sunita Rao, Adv., Ms. Pooja Sharma, Adv., Mr. Anurag, Adv., Mr. B. Krishna Prasad, Adv. For the Respondent : Mrs Manik Karanjawala, Adv. ORDER These appeals are directed against the order dated 05.09.2005 passed by the Customs, Excise & Service Tax Appellate Tribunal, South Zonal Bench, Mumbai (hereinafter referred to as "CESTAT") holding that the product in quest .....

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19. Under Chapter 39 the aforesaid product classified by the assessee pertains to "Plastics and articles thereof". Entry 3920.19 thereof is as under: "39.20 Other plates, sheets, film, foil and strip, of plastics, non-cellular, whether lacquered or metallised or laminated, supported or similarly combined with other materials or not. -Of polymers of vinyl chloride: 3920.11 -Rigid, plain 16% 3920.12 -Flexible, plain 16% 3920.13 -Rigid, lacquered 16% 3920.14 -Flexible, lacquered 16% .....

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hether the product in question can be treated as that of printing industry or it is covered by plastic industry. It is not in dispute that the assessee is procuring duty paid plastic film in jumbo roles and slit the same to requisite size. It is then passed through a special machine where the slit plastic film gets bent, sealed and cut and emerges in a tabular form. This tabular form is known as shrink sleeves'. Since it is done by the assessee for those who require the aforesaid product, th .....

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see the main purpose of the product is to provide tamper protection to the product inasmuch as it is shatter resistance, enhance puncture resistance and tamper proof packing. Learned counsel for the Revenue submits that it is not in dispute that it is the primary function of the product that would be the determinative test. In fact, the learned counsel has referred to the judgment of this Court in Metagraphs Pvt. Ltd. Vs. Collector of Central Excise, Bombay [1996 (88) ELT 630 (SC), wherein the c .....

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is done, are the product of printing industry, cannot be accepted." What follows from the aforesaid judgment is that each case has to be considered on its own facts and test determinative, whether a particular product falls within one class or the other depends upon the nature of the product with reference to the facts of each case and to cull out what is the true determining purpose for which the product is used and is treated by the traders as well as consumers of the said product. This i .....

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ication is the product' of the printing industry. The product' in this case is the carton. The printing industry by itself cannot bring the carton into existence". Let us apply this above formula to the facts of this case. The product' in this case is the aluminium printed label. The printing industry has brought the label into existence. That being the position and further the test of trade having understood this label as the product of printing industry, there is no difficulty .....

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n are not 'products of printing industry." When we apply the aforesaid test to the facts of the present case, we are clear in our mind that the printing was only incidental and the main purpose of the product is to provide tamper protection to the product to make shatter resistance, enhance puncture resistance and tamper proof packing. We may record that the learned counsel for the appellant tried to persuade us to take contrary view by relying upon the another judgment of this Court in .....

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fore, that the question resolves itself into whether printing is only incidental to the primary use of the goods or is something more than something merely incidental. We have already referred to the process hereinabove and the final product which emerges is a product which is used for security purposes. It is important to remember therefore, that the primary use of the product is security and not the quality of being adhesive. Here again, a simple example will suffice. Take an adhesive tape wit .....

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