Classification and excisability of tetra packs, bricks, pouches, containers made out of paper boards, plastic etc.; levy of duty on aluminium foil caps arising in the sealing of milk bottles - Regarding - Central Excise - 11/89

Classification and excisability of tetra packs, bricks, pouches, containers made out of paper boards, plastic etc.; levy of duty on aluminium foil caps arising in the sealing of milk bottles - Regarding Circular No. 11/89 Dated 13-3-1989 [From F. No. 141/14/87-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification and excisability of tetra packs, bricks, pouches, containers made out of paper boards, plastic etc.; levy of duty on aluminium foil caps arising in the sealing of milk bottles - Regarding. A doubt has been raised whether containers of tetra packs, bricks etc. made out of paper and paper board, plastics, aluminium foils and laminated sheets of these materials and produced simultaneously during the course of packing of the contents are excisable and subject to duty. 2. The matter has been examined. It is observed that the container as such does not come into existence in an identifiable form and as a separate entity in a marketable condition. The container which is formed in the machine is incapable of being taken out and marketed as a separate product in its own right. It is considered that packed goods alone would be available for assessment and, therefore, it would be proper to assess such packed goods only under the appropriate Tariff heading applicable to such goods and the question of assessing the container separately does not arise. 3. Similarly aluminium foil caps arising in the course of sealing of milk bottles not be excisable. It is observed that aluminium foil caps in question do not come into existence independently of the filled milk bottle and, therefore, are not available for marketing and assessment as such. It is considered that what is available for marketing and assessment is sealed milk bottle only and, therefore, the sealed milk bottle would be assessed under the appropriate Tariff heading applicable to such goods and aluminium foil caps which arise simultaneously in the course of sealing of milk bottles may not be assessed as a separate product. Board's earlier instructions contained in F. No. 164/8/87-CX.4, dated 17-6-1987 are therefore withdrawn. Field formations may be informed accordingly.