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Regarding Central Excise classification of printed materials of
advertising nature on metal plates
Circular
No. 150 dated 29th September 1995
I
am directed to say that certain doubts have been expressed regarding the correct
classification of printed metal plates which are of advertising nature. The
issue is whether metal plates printed by offset process, merit classification
under Chapter 49 as product of printing industry or as advertising sing plates
falling under Chapter 83 of the Central Excise Tariff Act, 1985.
2.
In this regard it has been represented that printed materials of
advertising nature on metal plate merits classification under Chapter Heading
49.01 of CETA, 1985 attracting nil rate of duty which includes printed books,
newspapers, pictures and other products of the printing industry. It has been
further stated that exclusion from Chapter 49 as per HSN notes (at page
700-Section X) shall not apply in the instant case as Chapter 49 of CETA, 1985
is not aligned with Chapter 49 of HSN.
3.
The issue has been examined in depth by the Board. Board has observed
that metal sign plates falling under Heading 83.10 are excluded from Chapter
Heading 49.11 as per the Explanatory Notes to the HSN. On the other hand,
advertising sign plates are included specifically under Chapter Heading 83.10.
While Chapter 83 of the Schedule to the Central Excise Tariff Act, 1985 is fully
aligned with the HSN Chapter 49 is not. Now, where there is divergence in
practice to the extent of interpretation of correct entry in the Schedule, the
heading which provides the more specific description is to be preferred over a
Heading providing a more general description. Looking at the goods in question,
it is observed that the essential character is derived from the fact that it is
sign plate advertising a certain product. The fact that it is a product of the
printing industry, is incidental to its primary function as an advertising sign
plate. Board is therefore of the view that since Chapter 83 of Schedule to CETA,
1985 is fully aligned with Chapter 83 of HSN, the goods, viz., advertising sign
plates, are appropriately classifiable under Heading 83.10 of the Schedule to
the CETA, 1985.
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