Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2005 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (3) TMI 302 - CESTAT, CHENNAIClassification of Hinge Lid Cutouts and Cardboard/Foil board with Aluminium foil - Valuation (Central Excise) - Captive consumption - HELD THAT:- We hold that the impugned goods are rightly classifiable under Heading 7607.90 as the Aluminium foils are neither perforated nor cut to shape. The Apex Court in the case of Union Carbide India Ltd. v. CCE [2003 (9) TMI 89 - SUPREME COURT] while setting aside the order of the Tribunal has specifically observed that since there is specific heading for perforated or cut to shape aluminium foils, they should be classified under that heading alone. In the present case, the facts are different. We hold that the impugned goods are classifiable under sub-heading 7607.90, ruling out 7607.30 which is meant for goods specific description. Appellants argue that the goods are rightly classifiable under Heading 4810.10 whereas the Department holds that the same are classifiable under Heading 4810.90. The appellants argue that the coated board is used for printing and is therefore specifically covered by the description under sub-heading 4810.10 which reads "Paper and Paperboard of the kind used for writing, printing or other graphic purposes. They argue that the residuary entry i.e. 4810.90 meant for "other" is not attracted. We agree that if Heading 4810.10 wants to cover coated board as well, it should have been specifically mentioned therein. The appellants argue that because they are printing something on the paperboard, it is a kind used for printing, but the fact remains that the goods in question are coated paperboard and not merely paperboard. We are of the opinion that coated paper goods are rightly classifiable under sub-heading 4810.90 as residuary item and plain paper boards (without coating) are covered under 4810.10. Thus, the appeal is disposed of in the following terms : (a) Value of the goods in question is to be determined in accordance with the principles of costing in CAS-4 and the judicial pronouncements. (b) Profit should be added to the cost of production on notional basis and not on the basis of profit earned by the Group of Companies as a whole. (c) HLCs and CBOs backed with aluminium foils are classifiable under sub-heading 7616.90 of the Schedule to the CETA, 1985. Coated Board is classifiable under sub-heading 4810.90. The appeal is thus allowed by way of remand.
|