TMI Blog2019 (9) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... structions with respect to the consumption and charges plan are also printed on the bill. Thus, it cannot be accepted that the argument of the learned Departmental Representative that the printing is merely incidental to the primary use - thus, the printed electricity bills have been correctly classified under heading 4911 in the impugned Order-in-Appeal and the Revenue s plea to classify the same under heading 4920 is not acceptable. Classification of waste and scrap of paper - HELD THAT:- The waste and scrap of paper under reference is not liable to excise duty and the findings of the Order-in-Appeal are upheld - benefit of SSI Notification no. 8/2003-CE and Notification 01/2011-CE and cum-duty benefit also allowed. Penalty - HELD THAT:- There are no infirmity in the order of Commissioner (Appeals) in reducing penalty to 50% of the demand confirmed under Section 11AC of the Central Excise Act, 1944 for the reason that all the transactions were duly recorded in books of account and the invoices were duly issued, hence the charge of willful suppression cannot be sustained and the respondents were eligible for reduction in the penalty. There are no infirmity in the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. Coupon 24. Answer Books 10. Diary 25. Annual Apps Annual Apps Envelope 11. Registers 26. Cards 12. Pad 27. Calendars 13. Letter Pad 28. Other Articles of Stationery 14. Letterhead 3. The original Adjudicating Authority after due process passed order dated 31.03.2017 confirming the demand on most of the items to the extent of ₹ 81,82,258/- collectively for both the show cause notices. The respondent preferred appeal against the adjudication order dated 31.03.2017 to the Commissioner (Appeals). The Commissioner (Appeals) vide impugned order dated 24.01.2018 confirmed the demand of ₹ 4,57,880/- and the balance amount of ₹ 77,24,381/- was set aside in the impugned Order-in-Appeal against which Revenue is in appeal before us. In h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IARIES 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 PAPERBOARD; ALBUMS FOR SAMPLES OR FOR COLLECTIONS AND BOOK COVERS, OF PAPER OR PAPERBOAD 7. It is his contention that since book cover is specifically covered under CET heading 4820, the same cannot be classified under heading 4901. However, the learned Counsel for the party has supported the findings of the Commissioner (Appeals) and its classification under heading 4901. He argued that these goods are in the nature of parts of parts of printed books inasmuch as that they are printing these book covers which are also title page of the book under agreement with the Education department of Madhya Pradesh Government. Such book covers are specifically designed and printed for the books to be distributed by the Education Department of the Madhya Pradesh Government and such books are also having the security mark embedded so that the book covers cannot be duplicated. These book covers are in individual sheet form cut to size and are ultimately to be bound with the printed books, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct as claimed by the Departmental Representative. He also produced the copy of the printed electricity bill. He further relied upon CBEC Circular No. 1052/01/2017-CE dated 23.02.2017 and Tribunal s decision in the matter of Data Processing Forms Pvt. Ltd. Vs. Commissioner Central Excise, Ahmadabad [2014(311) ELT 161]. 10. We have carefully examined the rival arguments and the sample of the printed electricity bill. We find that the electricity bill is fully printed on both sides and has few blank spaces on the front page to be filled specific to the consumption and charges etc. Not only it has advertisements but all instructions with respect to the consumption and charges plan are also printed on the bill. Thus, we cannot accept the argument of the learned Departmental Representative that the printing is merely incidental to the primary use. We further find that the classification of electricity bill is squarely covered in the case law in Data Processing Forms Pvt. Ltd. where this product and similar other products have been classified under heading 4911 after considering and discussing the decision in M/S Surya Offset Vs. CCE Ahmadabad. Referring to the said decision, the Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business of printing. The waste arising in the process cannot be classified under 4797. Even otherwise, they are entitled for exemption under notifications mentioned above. They have submitted the certificate of a Chartered Accountant to claim that waste and scrap of paper is attributable to printing of educational books. We note that in M/s. Wimco Ltd. 2008 TIOL (2769) CESTAT-Delhi= 2008 (230) E.L. T. 106 (Tri-Del.), the Tribunal held that the waste and scrap of paper/paper board arising during the course of manufacture of empty match boxes will not attract excise duty. The emergence of such waste and scrap from duty paid paper and paper board is not as a result of manufacturing activity and no excise duty leviable on such item. We note similar view has been held in M/s. Panasonic Energy India Co. Ltd. -2016 TIOL (3061) CESTAT-Delhi = 2017 (357) E.L.T. 1110 (Tri.-Del.). 12. We note that in the present case, the appellants are not engaged in the manufacture of paper or paper board. They are essentially engaged in producing various printed products. The products which they produced were variously classified as discussed above. They do not manufacture any waste and scrap paper. W ..... X X X X Extracts X X X X X X X X Extracts X X X X
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