Merely because some fabrics were pasted on books does not means that exemption that is provided to books is not admissible.

PJ/Case law/2013-14/1893

Case:-HONESTY SUBSCRIPTION AGENCY Vs COMMR. OF CUS. (CSI AIRPORT), MUMBAI

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

Brief Facts:-The appellant, M/s. HonestySubscription Agency, imported printed materials from M/s. 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 Specifier/Guide (v) Solid Chips (vi) Formula Guide Coated/uncoated (vii) VCP fall 2010 (viii) Pantone Colour Cue 2.0 and claimed exemption Notification No. 21/2002 claiming classification under Heading 4901 10 10. The original adjudicating authority classified the goods under Heading 4901 99 00 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 authority 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 specified at Sl. No. (i), (ii) & (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 coloured textiles passed on white sheets and therefore, they cannot be called as printed books. As regards the VCP fall 2010 no sample was produced before the appellate authority and therefore, he did not accept the contention of the appellant. Consequently, the appellant has preferred appeal to the Tribunal.

Appellant Contention:-The appellant submits that all the three items have matter printed on paper apart from coloured textile materials pasted on the paper. Merely because some fabrics samples have been pasted 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 colour planner. He also produced before us 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 respondent reiterates the findings of the lower authorities.

Reasoning of Judgement:-It was observed 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 pasted. 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. For examples, in a book containing many photographs, the photograph may occupy more space that the printed matter. That does not mean that it is a photo album and not a book. 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 VCP 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, it is not necessary to give a different treatment to the said items.

In view of the above findings, the appeal filed by the appellant is allowed.

Decision:-Appeal allowed.

Comment:-The gist of this case is that merely because some textile material is pasted on the papers, it cannot be contended by the revenue department that the imported goods are not books and are not eligible for availment of exemption.

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PJ/Case law/2013-14/1893

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