No Duty for Computer Stationery, LIC Forms, Bank Statement Forms manufactured as per the requirement of LIC, Banks & Govt department: CESTAT [Read Order]

The Central Excise and Service Tax Appellate Tribunal(CESTAT), Mumbai held that no duty for computer stationery, LIC forms, bank statement forms manufactured as per the requirement of LIC, banks and government department.

Appellants are engaged in the manufacture of various Computer Stationeries, LIC Forms, Bank Statement Forms as per the requirement of LIC, Banks & Government department as per the requirements of LIC, Bank, and Government department, falling under chapter subheading 482040 of Central Excise Tariff Act, 1985 and paying duty accordingly.

The letter dated 08.05.2009 had intimated that these goods as per them more appropriately get classified under heading 4901, attracting the “Nil” rate of duty and have accordingly discontinued payment of duty on these goods from 01.05.2009.

For the period 01.05.2009 to 31.05.2009, the duty amounting to Rs 1,04,276/- along with interest, in respect of the goods cleared without payment of duty, was adjudicated and confirmed by the jurisdictional Assistant Commissioner.

The appellants have during the period from 01.06.2009 to January 2010, cleared the goods without payment of duty thereby not paying the duty amounting to Rs 33,06,758/-.

The Tribunal comprising of Judicial Member, D.M Misra, and Technical Member, Sanjiv Srivastava delivered order based on an appeal filed by M/s. Nagpur Business Forms Pvt. Ltd.

Show Cause Notice was adjudicated by the Additional Commissioner which includes

1. Central Excise duty amounting to Rs 33,06,758/- (BED 32,10,445/- + Edn Cess Rs 64, 209/- + SHE Cess Rs 32,104/-) (Rupees Thirty Three Lakhs Six Thousand Seven Hundred and Fifty-Eight only) as detailed in Annexure “A” attached herewith should not be demanded and recovered from them under the provisions Section 11A of the Central Excise Act, 1944.
2. Interest payable on the amount as would be determined should not be recovered from them under Section 11AB of the Central Excise Act, 1944.
3. The penalty under Rule 25 of the Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944 should not be imposed on them.

The appellant argued that they undertake the printing jobs as per the requirements of the customer. The products of printing industry are specifically covered under Chapter 49 as per Chapter Note 12 to Chapter 48 and also the issue involved in the matter is no longer res-Integra and decided in series of decisions in Gopsons paper Ltd [2015 (324) ELT 5 (T)], Data Processing Forms Pvt Ltd [2014 (311) ELT 161 (T- Ahmd)] E/1733/2011 4, Laxmi Packaging Pvt Ltd [2015 (324) ELT 576 (T)],Dy Chief Manager (P&S) Central Railway [2015 (328) ELT296 (T)], Sri Kumar Agencies [2016 (344) ELT 507 (T-Bang)],Headway Lithographic Company [2015 (321) ELT 394(SC),Holostick India Ltd [2015 (318) ELT 529 9SC)],CBEC Circular No 1052/1/2017-CX dated 23rd February 2017.

While allowing the appeal the bench set aside the impugned order of the Commissioner (Appeals) and held that no duty for computer stationery, LIC forms, bank statement forms manufactured as per the requirement of LIC, banks and government department.