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2016 (1) TMI 558 - CESTAT KOLKATA

2016 (1) TMI 558 - CESTAT KOLKATA - 2016 (344) E.L.T. 344 (Tri. - Kolkata) - Classification of printed labels - articles of “paper and paper board” - classification under 4821.00 or 4823.90 of CETA - Undisputedly the activities carried out by the Munger factory was limited to cutting of big size labels manufactured in their other unit at Tiruvottiyur. Also, it is not in controversy that further processes were carried out on the said cut/sized labels at the factory of M/s.Surya Tobacco Co.Ltd., N .....

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s also noted that the goods continue to conform to the description of “paper board labels of all kinds” within the meaning of Sub-Heading 4821.00 of the Central Excise Tariff Act - Revenue has accepted the aforesaid Order-in-Appeal and consequential refund was sanctioned/allowed to the appellant. - Demand set aside - Decided against the assessee. - Appeal No.EA-72/05 - ORDER NO.FO/A/75812/2015 - Dated:- 17-12-2015 - Dr. D.M.Misra, Member(Judicial) And Shri H.K.Thakur, Member(Technical) For the P .....

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Sub-Heading 4821.00 of CETA, 1985; whereas, the department proposed its classification under 4823.90 alleging that the processes undertaken by the appellant resulted into manufacture as per Sec.2(f) of CEA,1944 and accordingly dutiable. On adjudication, the demand was confirmed. On Appeal, the Ld. Commissioner (Appeals) upheld the order of the adjudicating authority and rejected their Appeal. Hence, the present Appeal. 3. The ld.Sr.Advocate Dr.Samir Chakraborty for the appellant submits that the .....

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f duty. It is his contention that no further process of printing on these printed sheets was undertaken in the Munger factory; the printed sheets were only guillotined at the said factory i.e. printed sheets which were larger in size in comparison to the required size and labels were merely cut into proper label size prior to its clearance. No other activity has been undertaken at the Munger printing factory with regard to the said printed sheets. The said printed labels cut into sizes at Munger .....

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that the appellant in their Munger factory bring out a new product, having different commercial name, which were ultimately used for packing of definite number of cigarettes, hence, could be termed as manufacturing activity of packing materials falling sub-heading 4823.90 of CETA, 1985 and chargeable to duty. It is his contention that activities carried out partly at Nepal and partly at Munger factory cannot be considered in arriving at the conclusion that the appellant were engaged in the manu .....

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t. 4. Per contra, the ld.AR for the Revenue reiterated the findings of the ld. Commissioner(Appeals). However, he fairly accepts that in the subsequent order-in-appeal, the ld. Commissioner(Appeals) has accepted the contention of the Appellant and allowed their appeal by setting aside the order of the adjudicating authority. Also, he does not dispute that the said order has been accepted by the department and consequential refund was also sanctioned to the appellant. 5. Heard both sides and peru .....

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r Unit as well as at the Nepal unit arrived at the conclusion that the resultant product is dutiable under Sub-Heading 4823.00 of CETA, 1985. From the submission of both sides, we find that on similar issue, for the subsequent period, the ld. Commissioner(Appeals) has accepted their stand and decided the issue in their favour after taking into consideration the meaning of labels as per the HSN. The finding of the ld. Commissioner(Appeals) in the said order is as follows:- On the issue of merit I .....

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ng the place where the same are meant to be cut. AT their Munger factory, the continuous strips of labels so received from Thiruvottiyur are cut into individual pieces as per the marketing on the sheets. No printing on the printed sheets takes place at factory at Munger. The Standard Weight and Measures Act, 1976 under which the Government of India framed the Standards of Weights & Measures (Packaged Commodities) Rules, 1977 which requires all packaged commodities including cigarettes to com .....

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y. They are thereafter, exported to Surya Tobacco Co.(P) Ltd., Nepal, a company incorporated in Nepal. No other activity is undertaken at their Munger factory with regard to the said printed sheets. Even the Harmonized System of Nomenclature(HSN) Explanatory Notes provide that labels classified under Sub-Heading 4821.00 covered all varieties of paper and paper board labels of a kind used for attachment of any type of article for the purpose of indicating its nature, identity, ownership, destinat .....

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and specification giving demarcation line at which the same will be cut into sizes at one unit of M/s.ITC, Thiruvottiyur and cut into big sheet size. The same printed sheet cleared in the name of printed paper label classifying the same under sub-heading 4821.00 to M/s.ITC(PPD), Munger. At ITC(PPD) Ltd., Munger the printed sheets are cut to sizes at demarcated point/line. The said piece of printed paper then are sorted out and put into CFC (corrugated fibre board) either in specific weight or sp .....

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l officers. As stated above these goods are not subjected to any process amounting to manufacture within the meaning of Section 2(f) of the Central Excise Act, but merely cut to the required size at their Munger Unit. There is no dispute that the only job which is carried out at the Munger unit is cutting to size the printed labels of big sheet sizes received from the Thiruvottiyur factory and thereafter putting them into CFCs and exporting the same to Nepal. Hence, the only process undertaken a .....

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