IMPORTANT POINT
Printed Aluminium Labels are products of the printing industry within the meaning of Notification 55/75-CE dated 1.3.1975 issued under Rule 8(1) of the Central Excise Rules, 1944.

Headnote:Central Excise Rules, 1944-Rule 8(1)-Notification 55/75-CE dated 1.3.1975-Printed Aluminium Labels -Whether are products of printing industry within the meaning of Notification?-(Yes)-Test of trade having understood this label as product of printing industry.
       Held; this Court in Rollatainers case. There this Court approved the test based on understanding of trade parlance/common parlance of a particular product. In the case on hand, but for the printing, the aluminium label would serve no purpose and as seen above, it is the printing on the aluminium sheet, which communicates the message to the buyer that makes the sheet as a label, unlike a carton printed or plain which always remained a carton. (Para 10)
       The label announces to the customer that the product is or is not of his choice and his purchase of the commodity would be decided by the printed matter on the label. The printing of the label is not incidental to its use but primary in the sense that it communicates to the customer about the product and this serves a definite purpose. This Court in Rollatainers case held that "what is exempt under the notification is the product of the printing industry. The product in this case is the carton. The printing industry by itself cannot bring the carton into existence". Let us apply this above formula to the facts of this case. The product in this case is the aluminium printed label. The printing industry has brought the label into existence. That being the position and further the test of trade having understood this label as the product of printing industry, there is no difficulty in holding that the labels in question are the products of printing industry. It is true that all products on which some printing is done, are not the products of printing industry. It depends upon the nature of products and other circumstances. Therefore the issue has to be decided with reference to facts of each case. (Para 11)

JUDGMENT

Venkataswami, J.-The only question that arises for our consideration in all these Appeals is whether Printed Aluminium Labels (hereinafter referred to as "labels") manufactured by the appellant are products of the printing industry within the meaning of Notification 55/75-CE dated 1.3.1975 (hereinafter called "the Notification") issued under Rule 8(1) of the Central Excise Rules, 1944.

2. It is not in dispute that but for the exemption under the Notification, the labels in question , would fall under Item No. 68 of the First Schedule to the Central Excise and Salt Act, 1944 (hereinafter called the "Act"). The relevant portion of the said Notification is extracted below:-

"In exercise of the powers conferred by Rule 8(1) of the Central Excise Rules, 1944, the Central Government hereby exempts goods of the description specified in the Schedule annexed hereto, and falling under Item No. 68 of the First Schedule to the Central Excise and Salt Act, 1944, (I of 1944) from the whole of the duty of excise leviable thereon.

* * * *

13. All products of the printing industry including newspapers and printed periodicals."

3. It appears that the appellants claimed and got the labels in question exempted from the levy of duty on the ground that they come within the category of products of the printing industry, under the orders of Assistant Collector dated 24.12.1979. Later on the Collector of Central Excise, Bombay, invoking his powers under Section 35A of the Act issued a notice for revising the said order of the Assistant Collector dated 24.12.1979 and for bringing the goods under Item 68 for the purpose of levy of excise duty. After hearing the objections of the appellants, the Collector revoked the exemption granted by the Assistant Collector and directed assessment of the goods under item 68.

4. Aggrieved by the order of the Collector, the appellant preferred four appeals to the Customs, Excise and Gold (Control) Appellate Tribunal, New Delhi for different assessment periods. The Tribunal by its order dated 13.6.1986 held that the printing on the aluminium label being incidental to its use as a label or a wrapper and that being inherently not a piece of reading matter, will not fall under the above-said exemption Notification. On that view, the Tribunal dismissed the appeals. Hence the present appeals by special leave.

5. Mr. V. Laxmikumaran, learned counsel for the appellants has submitted that the Tribunal went wrong in coming to a conclusion that the printing on the aluminium label was incidental to its use. According to the learned counsel, the printing was the primary purpose and without it, the metal on which the matter was printed, is of no use to the appellant s customer. It is the contention of the learned counsel that it is the printing that gives the aluminium labels their use without which they would not be called labels and would serve no purpose. In other words, the printed words on the product inform the customer that he is buying the product of his choice or his brand. He also submitted that in the trade as well as in common parlance, these aluminium labels are treated as products of printing industry. According to the learned counsel, this was specifically pleaded before the Tribunal, but the Tribunal unfortunately not accepting this test has stated that this will not be a correct test. He also distinguished on facts the judgment of this Court in Rollatainers Ltd. & Another v. Union of India & Others1. According to the learned counsel, the test laid down in that judgment, if applied to the facts of this case, even then the appellant is entitled to succeed.

6. Mr. R. Mohan, learned Senior, Counsel appearing for the Revenue, Contending contrary submitted that the labels in question are not products of printing industry and the ratio laid down in the judgment referred to by the learned Counsel for the appellant would directly apply to the facts of this case and

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1996 Supreme(SC) 1956

IMPORTANT POINT Printed Aluminium Labels are products of the printing industry within the meaning of Notification 55/75-CE dated 1.3.1975 issued under Rule 8(1) of the Central Excise Rules, 1944.

Cases Referred (1)

IMPORTANT POINT
Printed Aluminium Labels are products of the printing industry within the meaning of Notification 55/75-CE dated 1.3.1975 issued under Rule 8(1) of the Central Excise Rules, 1944.