Exercise Books Classified under heading 4820
· Children’s Drawing Books
in 4903
[Ref: CBEC Circular No. 1057/06/2017-CX
dated 7 July 2017]
Sub: Classification of Printed Workbooks, Exercise books etc. under erstwhile CETA
1985
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.
F. No. 116/23/2015-CX.3