1. Dispute regarding whether unwaxed printed paper used as packaging wrappers qualifies as a produce of the printing industry for exemption under Notification No. 63/82. (Para 1 )
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1996 Supreme(SC) 1734
SUPREME COURT OF INDIA
A.M Ahmadi, C.J.I., S.B.Majmudar, S.P.Bharucha, JJ.
Collector Of Central Excise, Bombay
Versus
Paper Print And Products Company
Case No. : .
Date of Decision : 10/24/96
Materials used for packaging purposes, even if printed, are classified as products of the packaging industry rather than the printing industry, and thus do not qualify for exemptions specifically granted to the produce of the printing industry.
Headnote:(A) Central Excise - Notification No. 63/82 dated 28/2/1982 - Produce of printing industry - Exemption - Unwaxed printed paper used as wrappers in packaging - Whether such material attracts exemption granted to products of the printing industry - Material used for packaging purposes, even if something is printed thereon, is described as a product belonging to the packaging industry and not the printing industry. (Para 1)
Facts of the case:
The dispute concerns whether unwaxed printed paper, cut into sheets and reels according to customer needs for use as wrappers in packaging, qualifies as a produce of the printing industry to attract exemption under a specific notification.
Findings of Court:
The view taken by the tribunal is reversed as the material in question is a product of the packaging industry.
Issues: Whether unwaxed printed paper used for packaging purposes can be classified as a produce of the printing industry for the purpose of claiming exemption under Notification No. 63/82.
Ratio Decidendi: Exemption notifications for the printing industry do not apply to materials used for packaging purposes, regardless of whether printing has been done on them, as such items are categorized as products of the packaging industry.
Result: Appeal allowed.
Legal Category Hierarchy
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tax law
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tax exemptions
- industry classification (Para 1)
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tax exemptions
Table of Contents
2. Whether printed paper used for packaging purposes constitutes a product of the printing industry or the packaging industry for the purpose of tax exemption. (Para 1 )
3. Material used for packaging purposes is classified as a product of the packaging industry, regardless of whether it has printing on it. (Para 1 )
4. Printed material used for packaging purposes is a product of the packaging industry and not the printing industry, thus ineligible for printing industry exemptions. (Para 1 )
5. Appeal allowed and the tribunal's order set aside regarding unwaxed printed paper. (Para 2 )
6. Does printed paper used for packaging qualify as a product of the printing industry for tax exemptions?
No, material used for packaging purposes is described as a product belonging to the packaging industry, even if something is printed on it, and therefore does not qualify as a produce of the printing industry. (Para 1 )
(1) THE short question which we are required to consider in the instant case is whether unwaxed printed paper cut into sheets and reels according to the needs of the customer for the purpose of being used as wrappers in packaging can be said to be a produce of printing industry so as to attract the exemption granted under Notification No. 63/82 dated 28/2/1982. The issue stands squarely covered by the decision of this court on Rollatainers Ltd. v. Union of India (at the commencement of the judgment the page is wrongly printed as 438. In paragraph 11 of the said judgment this court held that the exemption notification could not apply to material which is used for packaging purposes even if something is printed thereon. It would still be described as a product belonging to the packaging industry and not printing industry. We, therefore, hold that the view taken by the tribunal needs to be reversed.
(2) IN the result, following the aforementioned judgment of this court we allow the appeal, set aside the order of the tribunal insofar as it concerns unwaxed printed paper and make no order as to costs.
