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Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No. 1057/06/2017-CX
New Delhi, dated the 7th July, 2017
To
The Principal Chief Commissioners/ Chief Commissioners/Principal
Commissioners of
Central Tax & Central Excise (All)
Madam/ Sir,
Sub: Classification of Printed Workbooks, Exercise books etc. under erstwhile
CETA 1985-reg.
Representations have been received from the members of the trade requesting
clarification regarding classification of printed workbooks, exercise books,
children’s drawing book etc. The issue raised in these representations is
whether the aforesaid goods are classifiable under Chapter 48 or Chapter 49 of
the erstwhile Central Excise Tariff Act (CETA), 1985. Issue was also litigated
before the Hon’ble High Court of Delhi. The Hon’ble High Court directed Board to
examine the matter and pass appropriate order at its earliest convenience.
2. The issue has been examined. Exercise Books have been explained in HSN
under explanatory note (2) to Heading 48.20 as, “These may simply contain sheets
of lined paper but may also include printed examples of handwriting for copying
in manuscript”. Such exercise Books are specifically classified under heading
4820 of the erstwhile CETA, 1985. These are nothing but stationary items having
blank pages with lines for writing and may also include printed texts for
copying manually. In common parlance they are more akin to handwriting “note
books” for practicing rather than “work books” containing printed exercise. This
definition of Exercise Books is in harmony with other items specified under
Chapter Heading 4820 of erstwhile CETA, 1985 such as registers, note books,
diaries, letter pads etc. where printing is incidental to their primary use i.e.
writing. The fact that printing is incidental to their primary use is the
guiding principle for classification of Exercise Books under heading 4820 of
erstwhile CETA, 1985.
3. Printed work books on the other hand are books where printing is not
merely incidental to the primary use. HSN Explanatory notes (A) to the heading
49.01 reads as, “Books and booklets consisting essentially of textual matter of
any kind, and printed in any language or characters…include…textbooks (including
educational workbooks sometimes called writing books), with or without narrative
texts, which contains questions or exercises (usually with spaces for completion
in manuscript)….” Thus, printed work books containing questions followed by
spaces for writing or other exercises would fall within the scope of Chapter 49.
The said goods are different from Exercise Books falling under Chapter 48 which
are stationary items with blank pages with lines for writing and some time may
also include printed texts for copying manually, as explained in the preceding
para. Further, since printing in case of printed workbooks is not merely
incidental to the primary use of the goods, such goods are classifiable under
Chapter 49, in terms of chapter note 12 to chapter 48 of erstwhile CETA, 1985.
4. Similarly, HSN Chapter note (6) to Chapter 49 read with HSN explanatory
note under heading 49.03 covers children’s workbooks consisting essentially of
pictures with complementary texts, for writing or other exercises, and
children’s drawing or colouring books, provided the pictures form the principal
interest and are not subsidiary to the text. Thus, children’s drawing books
which are in harmony with said HSN Chapter note (6) and HSN Explanatory note to
heading 4903 would fall under Chapter 49.
5. Past cases may be decided in terms of instructions issued as above.
Difficulty faced, if any, in implementing the circular should be brought to the
notice of the Board. Hindi version will follow.
(ROHAN)
Under Secretary to the Government of India
[F. No.
116/23/2015-CX.3]
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