Classification of imported printed materials for exemption under notification no. 21/2002.

PJ-Case law-2012/13-1575

Case:- HONESTY SUBSCRIPTION AGENCY V/S. COMMISSIONER OF CUS. (CSI AIRPORT) MUMBAI

Citation :- 2013 (291) E.L.T. 570 (Tri. – Mumbai.)

Brief facts:-The facts of this case in brief are that the appellant, M/S. Honesty subscription agency, imported printed materials from pantone inc. USA, which were books relating to subject of textile colour designing/ matching. There were eight categories of technical book, namely, (i) colour passport (ii) F+H Colour planner (iii) F+H Textile colour guide (iv) F+H Textile specified /guide (v) solid chips (vi) formula guide coated/ unctd (vii) VCP Fall 2010 (viii) pantone colour cue 2.0 and claimed exemption notification no. 21/2002 claiming classification under heading 4901110. The original adjudicating authority classified the goods under heading 49019900 and denied the exemption on the ground that the goods under importation were not in the nature of printed books. The appellant preferred an appeal before the lower appellate in respect of all the items except (viii) and the lower appellate authority after considering the appeal allowed the exemption in respect of the item mentioned at (iii) to (vi) mentioned above. In respect of item number as specified at Sl. No. (i) (ii) and (vii) he rejected the assessee’s claim to consider them as printed material on the ground that the major portion is in the form of small rectangular swatches of variously colored textiles passed on white sheets and therefore, they cannot be called as printed books.

Appellant contention:- The learned consultant for the appellant submits that all the three items have matter printed on paper apart from colored textile materials pasted on the paper. Merely because some fabrics samples have been passed on the books, it does not cease to be a book and the fabric samples are an integral part of the book and therefore, the item as a whole has to be considered as printed books. He further submits that these items bear ISBN number also in respect of colour passport and color and color planner. He also produced before a copy of VCP Fall 2010, which is similar in nature to the other items and contains printed materials. Accordingly, he pleads for allowing the appeal.

Respondent contention:- The learned AR appearing for the revenue reiterates the findings of the lower authorities.

Reasoning of judgement:- After considering the submissions made by both sides and perused the samples of the items imported, it is found that both colour passport and F+H colour planner have introductory text and all pages have printed material on them including rectangular strips /chips of colour of textile material obviously, a textile material cannot be printed on a paper and has to be passed. Further, below every textile chip the colour name and code is printed. Merely because the textile material occupies more space it cannot be stated that they are not books. Further we notice that both colour passport and colour planner bear ISBN numbers, which is also indicative that they are in the nature of books. Similarly, in the case of VSP fall 2010, the product is very similar to colour passport and colour planner, the only difference being it does not have a ISBN number. In other words it has printed matter on paper on every page and therefore, we do not find it necessary to give a different treatment to the said items. We hold that all the three impugned items merit classification as printed books and eligible for exemption under notification No. 21/2002.

Decision :- Appeal allowed.

Comment :- The analogy drawn from this case is that the manufacturer will be eligible for availing exemption under notification no. 21/2002 if printed books are imported and in this case manufacturer imported printed material which are in the nature of printed books so exemption shall be available to the appellants.

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PJ-Case law-2012/13-1575

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