1994 (9) TMI 284 - AT - Central Excise

Summary

Issues: Classification of 'slides' and 'shell' under Notification No. 66/82

The judgment involves the issue of classification of 'slides' and 'shell' under Notification No. 66/82. The appellant had initially claimed classification under Tariff Item No. 17(4) but was denied the benefit of the said notification by the Collector. The appellant argued that the items should be classified under T.I. 68 or be fully exempt under Notification No. 66/82. The Collector had ruled in favor of the department, stating that the appellants had themselves sought classification under Tariff Item No. 17(4) and thus, the benefit of Notification No. 66/82 was not applicable.

Detailed Analysis:

The appellant had filed their classification list claiming the classification of the product under Tariff Item No. 17(4) and sought the benefit of exemption under Notification No. 66/82. However, the Collector held that since the appellants themselves had sought classification under Tariff Item No. 17(4) and it was approved, the benefit of Notification No. 66/82 could not be granted. The Collector directed the grant of benefit under Notification No. 67/82 instead. The appellant contended that the items should be classified under T.I. 68 or be fully exempt under Notification No. 66/82, as they were merely articles of paperboard and not printed boxes or cartons.

The Tribunal referred to previous rulings by the Delhi High Court and the Madras High Court, which held that slides and outer shells cannot be subjected to duty as cigarette packets already contain cigarettes that have separately suffered duty. The Tribunal followed the ratio of these judgments and allowed the appeals of the assessees. Based on the precedents cited, the Tribunal allowed the appeal of the appellant and granted consequential relief. The cross-objections of the department were deemed not to survive in light of the judgment.

In conclusion, the Tribunal ruled in favor of the appellant, allowing the appeal and granting relief based on the classification of 'slides' and 'shell' under Notification No. 66/82. The judgment highlighted the importance of previous rulings and established principles in determining the classification and duty liability of such items in line with the relevant notifications and tariff items.