ORDER
V.P. Gulati, Vice President
1. The issue in the appeal relates to the benefit of Notification No. 61/88 which is available in respect of the paper of specified variety which is used for purpose of printing of text books and other books of general interest. The books involved in the present case have been described as colouring books. The learned lower authority in para 4.2 of his order has held as under :
“The next question is whether children’s colouring books can be considered as books of general interest but there is no definition for books of general interest in the Notification. However it appears that the books of general interest will have to be the ones which by themselves hold a general interest to all Sections of a literate society. In the instant case, it could not be said that the colouring books by themselves have any general interest. At best they induce the children of certain age group to do some work, i.e. to colour on them and after that colouring only the question of interest if any in the books arises, since the books have pictorial representation of varieties of scenes, animals, birds, flowers, fruits etc. As per Tariff Advice given by CBEC, the general interest book is a book which is not limited in its appeal to only a small group of specialists. In this view, it is seen that these colouring books at best will be of interest only to young children and cannot be held to a book of general interest. Further, normally a book is associated with some reading material. In view of the above, I hold that the Assistant Collector was right in denying exemption under Notification 61/88 to these books. However, so far as mod-vat credit benefits are concerned, the Assistant Collector will have to verify duty paid documents for the inputs and revise the demand after allowing duty credits, if otherwise in order, as decided by CEGAT, in the decision cited by the appellants. Likewise the assessable value also will have to be revised after taking into account the duty payable due to denial of exemption to the paper in question in accordance with the other CEGAT decision cited by the appellants.”.
2. The learned Advocate for the appellants referring to the order of the learned lower authority has pointed out that the learned lower authority while he accepts that colouring books etc. are books has misdirected himself in holding that the books meant for children could not be taken to be of general interest. He has pleaded the books in question are not text books. Therefore the question to be considered is what are the books which can be termed to be of general interest. He has pointed out that the learned lower authority himself has stated in his findings that there is no definition of books of general interest. He has however referred to the tariff advice of the Central Board of Excise and Customs wherein the scope of books of general interest has been elaborated and it has been stated therein that this is a book which is not limited in appeal only to a small group of specialist. He has pleaded admittedly that children’s books cannot be considered as books for small group of specialist. These books intended for general interest of the children. He has pleaded that there are books which are targeted to certain population groups and which are not in the nature of specified books and therefore those books can also be considered as general books. He has therefore pleaded that benefit of Notification 61/88 should have been allowed. He has pleaded in case this benefit is given the other points raised by them will not be relevant for consideration.
3. The learned JDR has adopted the reasonings of the learned lower authority.
4. We have considered the pleas made by both the sides. We observe that the item books figure in the Central Excise Tariff under chapter 49 and under which the exemption notification has been issued. The scope of the term book as it is has not been set out under Chapter Notes. But there is an indication to show that the ‘books printed’ under Section 49 also means those printed by duplicating machine, or copies produced under the control of computer, embossed, photographed, photocopied etc. We observe that under the HSN on which the Central Excise Tariff is based under various headings different types of books have been set out. It is seen that the picture books also figure under this under Chapter 49.03. This heading 49.03 carries the heading Children’s Picture, Drawing or Colouring Books. The scope of this heading is amplified in the HSN as under:
49.03. Children’s Picture, Drawing or Colouring Books
This heading is restricted to those picture books clearly compiled for the interest or amusement of children or for guidance in their first steps of primary education, provided the pictures form the principal interest and are not subsidiary to the text (see Note 6 to this Chapter).
This category includes, for example, pictorial alphabet books and books of the kind in which the sense of stories is conveyed by a series of episodal pictures accompanied by captions or summary narratives related to the individual pictures.
It does not include books, even profusely illustrated, written in the form of continuous narratives with illustrations of selected episodes. These fall in heading 49.01.
The books of this heading may be printed on paper, textile, etc., and include children’s rag books.
A child’s picture book incorporating “stand-up” or movable figures also falls in this heading but if the article is essentially a toy it is excluded (Chapter 95). Similarly, a child’s picture book containing pictures or models for cutting out remains in this heading provided the “cut-out” portions are a minor feature, but if more than half the pages (including covers) are designed for cutting out, whether wholly or in part, the article, even if also containing a certain amount of text, is regarded as a toy (Chapter 95).
It is seen that drawing books are also covered under the term books. The learned lower authority has also not in his order held that these could not be considered as books. The objection taken is that they could not be treated as books of general interest. Once the children’s drawing books are considered as books, the controversy narrows down only to the point whether these are of general interest. The books of general interest are to be considered in contradistinction to the books which are of interest to the specialist as clarified by the Board. Some of the books of general interest may have universal acceptance and readership while the others may be for a certain segment of the population or some books may be published for certain targeted population. Just because the targeted population is limited does not make the book anything less than a book of general interest. In the present case the books for children can be considered as books of general interest. In the above view of the matter we hold that the benefit of Notification 61/88 in the context of the books which are held to be of books of general interest is available. In that view of the matter we allow the appeal of the appellants. Consequential relief in the above terms may be allowed.