Decided on September 07,2015

Commr. Of C. Ex., Cus. And S.T., Hyderabad -Iii Respondents


ARCHANA WADHWA,MEMBER (J) - (1.)All the appeals are being decided by a common order in terms of the remand order passed by the Hon'ble Supreme Court vide which the matter stand remanded. As per facts on record, M/s. VST Industries Ltd. is engaged in the manufacture of cigarettes. Revenue entertained a view that the appellants are also manufacturing printed gay wrappers, which are being used by them in the packaging of cigarette packs. Accordingly they raised show cause notices alleging that even if the said printed gay wrappers had been manufactured by them through their job workers, they have to be treated as manufacturers and raised the demand against the appellant by classifying the said printed gay wrappers as falling under Heading 4823.90. During the course of adjudication, the appellant raised a stand that they are not the actual manufacturers of the said wrappers and the demand, if any, should be directed against the job workers, who are actually manufacturing the said wrappers. In the alternative, the appellant pleaded that the gay wrappers in question used for packaging of cigarettes are properly classifiable under Heading 4901.90 of Central Excise Tariff Act as products of printing industry, which carry 'NIL' rate of duty. As such, the demands are not liable to be confirmed.
(2.)The above plea of the appellant was not accepted by the original adjudicating authority who confirmed the demand against the appellant by classifying the printed gay wrappers falling under Heading 4823.90. It is seen that identical disputes were raised in the case of other appellants similarly situate as regards the dispute on the classification of the product. One such matter came before the Tribunal in the case of Sri Kumar Agencies & others and it was held that the product falls under Heading 4901.90, which attracts 'NIL' rate of duty. At this stage, it may be seen that the Tribunal's Final Order holding in favour of the assessees as regards the classification was put to challenge by the Revenue before the Hon'ble Supreme Court, who remanded the matter for fresh decision.
(3.)In the meanwhile, another matter in the case of Web Impressions (India) Pvt. Ltd. v/s. CCE, Calcutta was disposed of by the Tribunal, Kolkata Bench [ : 2002 (141) E.L.T. 370 (Tri. -Kol.)]. The said order was also challenged by the Revenue before the Hon'ble Supreme Court. The Hon'ble Supreme Court while disposing all the appeals filed by the Revenue held as under [2009 (236) E.L.T. A54 (S.C.)]: -
1. Challenge in this appeal is to the judgment of Customs, Excise and Gold (Control) Appellate Tribunal, Eastern Bench, Kolkata (in short 'CEGAT'). In this case the CEGAT followed the order passed by another Bench of CEGAT in the case of Srikumar Agencies who was one of the respondents in Civil Appeal Nos. 4872 -4892 of 2000. By our separate judgment today in Civil Appeal Nos. 4872 -4892 of 2000 we have set aside the order of CEGAT and remitted the matter to it to be dealt with afresh. The decision in the said case shall apply to the facts of the present case.

2. The appeal will be heard afresh by the appropriate bench of CEGAT which is presently known as Customs, Excise & Service Tax Appellate Tribunal (in short 'CESTAT').

3. Since the matter is pending for long, we request the CESTAT to dispose of the appeal as early as possible preferably by the end of February, 2009.

4.The appeal is allowed."

As such, by taking note of the fact that the Tribunal's decision in the case of Web Impressions (India) Pvt. Ltd. has followed the earlier decision of the Tribunal in the case of Sri Kumar Agencies [2000 (116) E.L.T. 463 (Tri. -Mad.)], which decision of the Tribunal already stands set aside and the matter stands remanded by the Hon'ble Supreme Court [ : 2008 (232) E.L.T. 577 (S.C.)], the matter in the case of Web Impressions (India) Pvt. Ltd. was also remanded.


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