TMI Blog1980 (5) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... round that the printed cartons manufactured by them would be eligible for exemption as "products of the printing industry". The Assistant Collector of Central Excise, Division IV, Bombay, in his order dated 18-1-1978 rejected the party's claim for exemption and on the party's appeal, the Appellate Collector of Central Excise, Bombay, in his order-in-appeal, dated 18-4-1978, set aside the Assistant Collector's order applying the ratio of an earlier decision of Government of India in revision in the case of M/s. Allibhoy Sharafally, Bombay [1978 E.L.T. (J 145)]. The Appellate Collector did not go into the question whether the facts of the party's case were identical to the facts in the Allibhoy Sharafally's case. Therefore, the Appellate Coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the Central Government is vested with the necessary authority to do so. 2.1 The party submitted that they are members of an association of printers known as Bombay Master Printers' Association and that paper and paper board are printed in sophisticated printing presses and subsequently 'finished' after being cut to the required size and specifications. Such finished material are supplied to manufacturers who thereafter unfold and/or stick and/ or fold the paper boards into cartons as required. It was emphasised that in the finished cost of the materials, the cost of printing has the major or the substantial part representing between 66% and 85% of the total conversion cast and the printing element as the most decisive, as the printing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the printing industry. In answer to this, the party contended that all such cigarette manufacturers are also registered printers and their activities in relation to printing are governed by the same regulations as the printing industry and practically all of them make cartons not only for their own use but also for others. 4. Government have examined the records of the case including the submissions made by the party in their reply to the review notice and those urged at the time of hearing. Government observe that in the manufacture of printed cartons, the first stage is printing the paper board and if the product is marketed at the stage without being subjected to any further process of manufacture it can perhaps be treated as the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ltimately right, not consistently wrong." The observations of the Bench in the earlier order that the cost on account of printing is of the order of 70 to 90% were not based on any factual data let in by the petitioners nor do these in the Government's view, provide a sound and reliable guide for-deciding the issue. In the instant case, the party was asked specifically to furnish the cost break-up in respect of their printed cartons, which indicate that the cost factor on account of printing, by the very nature of things, vary widely from design to design. For instance, in the case of paper board printed for "Nataraj Tea Bags" the printing cost is of the order of 27.8%, whereas the cost of printing for "Glaxose D" is 11.99%. Government obse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch they have invited attention to a write up on 'Printing' appearing on pages 130-156 of the encyclopaedia of "HOW IT'S MADE" edited by Donald Clarke (Published by Marshall Cavandish, London New York, -1978), wherein it is mentioned that : "Apart from the obvious books, magazines and newspapers, the products of the printing industry are many and diverse. They include posters, bank notes, telephone directories, postage stamps, record sleeves, wallpapers, cartons, plastic containers and many other forms of packaging". Government observe that the passing reference is not explained further with any rationale to lead to any firm conclusion on the issue before the Government and is, in any case, not of much help to the party, even more so i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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