HOLOSTICK INDIA LTD. Vs. COMMNR. OF CENTRAL EXCISE

JUDGEMENT

(1.) The present case concerns itself with a classification issue. The facts necessary to appreciate the controversy are as follows: -

(2.) The appellant manufactures security holograms. At the very beginning of the manufacturing process, they use coated metallised film which we are informed is classified under Tariff entry 39.20.36 after which the said film is embossed. Post embossing, there is adhesive coating and release coating which results in a hologram which ultimately is cut to size and utilised by customers of the appellant for security purposes. In the show cause notice dated 04.02.2000, the Department sought to classify the security hologram under Tariff entry 39.19 of the Central Excise Tariff 1999-2000. In the reply dated 15.05.2000, the appellant disputed this and stated that, in fact, the holograms ought to be classified under Tariff entry 49.01.

(3.) The Commissioner, Central Excise, by an order dated 01.01.2002 agreed with the Department's classification and classified the said goods under Tariff entry 39.19. An appeal to the Customs, Excise & Service Tax Appellate Tribunal (hereinafter referred to as 'CESTAT') by the appellant was dismissed. The Tribunal by the impugned judgment dated 19.12.2003, agreed with the learned Commissioner and added reasoning of its own to which we shall advert to later.