By TIOL News Service

MUMBAI, JAN 03, 2013: THE appellant imported printed materials from M/s Pantone Inc. USA, which were books relating to subject of textile colour designing/matching. There were eight categories of technical books, namely, (i) color passport (ii) F+H Color Planner (iii) F+H Textile color guide (iv) F+H Textile Specifier/Guide (v) Solid Chips (vi) Formula Guide Coated/unctd (vii) VCP fall 2010 (viii) Pantone Color Cue 2.0 and claimed exemption notification no. 21/2002-Cus claiming classification under heading 49011010. The original adjudicating authority classified the goods under heading 49019900 and denied the exemption on the ground that the goods under importation were not in the nature of printed books.

The appellant preferred an appeal before the lower appellate authority in respect of all items except (viii) and the lower appellate authority after considering the appeal allowed the exemption in respect of the items mentioned at (iii) to (vi) mentioned above. In respect of item number specified at Sl. No. (i), (ii) and (vii) he rejected the appellants claim to consider them as printed material on the ground that the major portion is in the form of small rectangular swatches of variously coloured textiles pasted on white sheets and, therefore, they cannot be called as printed books.

Before the CESTAT, the appellant submitted that all the three items have matter printed on paper apart from coloured textile materials pasted on the paper; that merely because some fabrics samples have been pasted on the books, it does not cease to be a book and the fabric samples are an integral part of the books and, therefore, the item as a whole has to be considered as printed books; that these items bear ISBN number also in respect of colour passport and colour planner. A copy of VCP Fall 2010 which is similar in nature to the other items and contains printed materials was also produced before the CESTAT. In fine, the appellant requested for allowing their appeal.

The Revenue representative reiterated what the lower authorities had held.

The Bench held -

"6. We have carefully considered the submissions made by both sides and we have also perused the samples of the items imported. Both color passport and F+H color planner have introductory text and all pages have printed material on them including rectangular strips/chips of color of textile material. Obviously, a textile material cannot be printed on a paper and has to be pasted. Further, below every textile chip the color name and code is printed. Merely because the textile material occupies more space it cannot be stated that they are not books. For example, in a book containing many photographs, the photograph may occupy more space than the printed matter. That does not mean that it is a photo album and not a book. Further, we notice that both color passport and colour planner bear ISBN numbers, which is also indicative that they are in the nature of books. Similarly, in the case of VCP Fall 2010, the product is very similar to colour passport and colour planner, the only difference being it does not have a ISBN number. In other words, it has printed matter on paper on every page and, therefore, we do not find it necessary to give a different treatment to the said items.

6.1 In view of the above discussion, we hold that all the three impugned items merit classification as printed books and eligible for exemption under notification no. 21/2002-Cus."

The appeal was allowed with consequential relief.

Honesty is the best policy ... always!

(See 2013-TIOL-18-CESTAT-MUM)