TMI Blog2005 (9) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... ves, printed as well as unprinted in terms of the approved classification list under sub-heading 3920.19, the Commissioner vide his impugned order has classified the same under Heading 4901.90, as products of printing industry. Accordingly, it has been held in the impugned order that as the goods classified under Chapter 49 attracted nil rate of duty, the duty paid by the appellants under Chapter 39 is to be treated as deposit with the Central Government in terms of the Section 11D of the Central Excise Act, 1944. He has further observed that because the said item attracted nil rate of duty under Chapter 49, the appellants were not entitled to the benefit of Modvat credit availed on the inputs used in the manufacture of said goods. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in unprinted form. The main purpose of shrink sleeves is to provide tamper protection to the product inasmuch as they are shatter resistance, enhance puncture resistance and tamper proof packing. The same are distinct commercial product known to the trade and market as shrink sleeves. The very fact that some of the customers are also using the said sleeves in an unprinted form to give tamper protection to their product is indicative of the fact that the main use of the product is not conveying of the product details and the printing of the sleeves in some cases, with the design, logo, date of manufacture, etc., is only incidental to the primary use of the goods, which is pilfer proof packing of products, in which case the goods would prope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not the case as we find that plain plastic shrink sleeves are also being used for packing the goods. As such, it has to be held that the logos, design or printing of ingredients of the product packed in the containers, on the shrink sleeves is only incidental to the main use of the sleeves and cannot be called to be primary object of printing. If along with providing tamper proof packing to the container, the sleeves also disclosed the contents of the container and the other relevant factors, the same cannot be considered to be the main purpose and use of sleeves, thus holding them to be the product of printing industry. 7. We may here refer to Board's Circular No. 6/89-CX, considering the classification of various products including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... industry. The Conference arrived at the following decisions :- (a)……… (b)………. (c) Printed plastic films/sheet and Printed plastic film/sheet laminated with another plastic sheets:- Since printed plastic films/sheets are not the products of printing industry those will merit classification only under Chapter 39 after 1-3-1987 in view of what has been stated at Paragraph (2) and (3) above. In any case, these were not classifiable under Chapter 49 even before 1-3-1987 as this chapter encompassed within its ambit only the products of paper printing industry. Similarly, plastic film laminated with another plastic film would merit classification under Chapter 39 only as other material is not used at all necessitating the examination of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... find that in the case of Metagraphs Pvt. Ltd., the Hon'ble Supreme Court also observed that the test of trade having understood this label, as the product of printing industry, there was no difficulty in holding that the labels in question are the products of printing industry. It was further observed that all the products on which some printing is done are not the products of printing industry and it depends upon the nature of products and other circumstances and issue has to be decided with reference to the facts of each case. A general test is neither advisable nor practicable. As such, the ratio of the above decision cannot be applied without appreciating the prime use of the products in question, which seems to have been done by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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