Custom, Excise & Service Tax Tribunal
M/S. Keshoram Surindernath ... vs Cce, Bangalore-I on 30 August, 2013
CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT BANGALORE
Bench Division Bench
Court I
Date of Hearing:30/08/2013
Date of decision:30/08/2013
Appeal No.E/376/2003
(Arising out of Order-in-Appeal No.376/2003
passed by CCE(Appeals-I), Bangalore)
M/s. Keshoram Surindernath (Photo-Mag) Pvt. Ltd.
..Appellant(s)
Vs.
CCE, Bangalore-I
..Respondent(s)
Appearance Mr. K.S. Naveen Kumar, Advocate for the appellant.
Mr. S. Teli, Deputy Commissioner(AR) for the respondent.
Coram:
Honble Shri S.S. Kang, Vice President Honble Shri B.S.V. Murthy, Member(Technical) FINAL ORDER No._______________________ [Per B.S.V. Murthy] The appellant is engaged in providiging illuminated signboards, nameplates, self-adhesive graphic cut vinyl stickers, signages and parts with illuminated signboards. Taking a view that this process undertaken by the appellant in providing these items amounts to manufacture and appellant is liable to pay excise duty, proceedings were initiated for demand of excise duty from the appellant during the period from 1997-98 and 1998-99. Excise duty of Rs.2,91,679/- has been demanded with interest and penalty under Section 11AC also imposed.
2. The learned counsel on behalf of the appellant submitted that appellant does not dispute their liability as regards the substrate or facia which are part of illuminated signboards and appellant manufactures substrate as well as facia and also illuminated signboards. The appellants claim is that vinyl cut graphics, vinyl self-adhesive stickers and translates are not liable to excise duty since they are products of printing industry. According to the learned counsel, in respect of all these products, the customers provide them with certain images or written material or printed material and require the appellant to produce advertising material containing the images/ printed or written material. After scanning or data entry and effective modification in computer, the correct image is printed on the translate sheets or polycarbonate sheets. In the case of vinyl self-adhesive stickers, the image is transferred to vinyl sheets. He submits that the Department has classified these items as parts of illuminated signboards. The correct classification is under Chapter 49 and once they are classified under Chapter 49, the same are exempt from payment of excise duty. The learned AR would support the adjudication order and the order of the Commissioner(Appeals) wherein a view has been taken that these are to be treated as parts of illuminated glow signboards under Central Excise Tariff sub-heading 9405 and liable to duty.
3. We have considered the submissions made by both sides. According to Chapter Note 2 of Chapter 49, For the purposes of Chapter 49, printed also means reproduced by means of a duplicating machine, produced under the control of a computer, embossed, photographed, photo-copies, thermocopied or typewritten. It is the submission of the learned counsel that their product is covered under this Chapter Note and sub-heading 4901.90 is the appropriate Central Excise Tariff head and the rate of duty is nil. On the other hand, heading 94.05 relevant to the items manufactured here covers illuminated signs, illuminated name plates and the like, having permanently fixed light source, and parts thereof not elsewhere specified or included. From the two headings reproduced above, it is quite clear that unless an item is part of illuminated signboard, the same cannot be classified under Chapter 9405. Neither in the Order-in-Original nor in the Order-in-Appeal, the claim made by the appellant that these items are not parts of illuminated signboards has been discussed in detail and contrary evidences available considered. Therefore, we have to consider the issue in the light of the submissions made by the counsel and the sample produced before us and the manufacturing process explained. From the manufacturing process explained and reproduced above and the Chapter Note 2 of Chapter 49, the products such as translates, vinyl self-adhesive stickers and vinyl graphic cut by the appellants cannot be considered as parts of signboards and from the manufacturing process, it emerges that these are products of printing industry since the processes undertaken are covered by the Chapter Note. Therefore, we consider it appropriate that the appellants claim that these items cannot be classified under CETH 9405 has to be accepted. As regards signages on metal base and illuminated glow signs and other materials produced by the appellant which are parts of signboards, appellants are not disputing the liability and therefore the demand on these items has to be upheld. The total value of clearances in 1997-98 in respect of these items, according to appellants worksheet, is Rs.13,74,343/- and duty payable would come to Rs.3540/- after giving the benefit of SSI exemption. As regards 1998-99, the total amount of excise duty payable would come to Rs.22,546/-. Since the appellants have not taken registration and have not paid excise duty, we find that the penalty has been correctly imposed and there is no need to interfere with the same. In the result, the duty demand as mentioned above + interest and the penalty equal to the duty are upheld. The appeal is disposed of in above terms.
(Pronounced and dictated in open court)
(B.S.V. MURTHY) (S.S. KANG)
MEMBER (TECHNICAL) VICE PRESIDENT
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