TMI Blog2003 (2) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... t would be other packing container and not paper box . 2. The aforesaid question is required to be decided by considering the relevant part of Tariff Item No. 17 and Exemption Notification No. 66/82-C.E, dated 28-2-1982. Tariff Item No.17 reads as under : - Item No.17 PAPER AND PAPER BOARD AND ARTICLES THEREOF Item No. Tariff Description Rate of Duty 17. Paper and Paper Board, all sorts (including paste-board, millboard, strawboard, cardboard and corrugated board), and articles thereof specified below, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power (1) , (2) , (3) .. (4) Boxes, cartons, bags and other packing containers (including flattened or folded boxes and flattened or folded cartons), whether or not printed and whether in assembled or unassembled condition. Thirty two and a half per cent ad valorem, The Exemption Notification dated 28-2-1982 reads thus :- In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts articles of paper or paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A small or medium-sized container of cardboard paper, etc., often together with its contents. 2. A packet of biscuits 3. A small package; parcel Carton 1. A cardboard box for containing goods; 2. A container of waxed paper or plastic in which liquids, such as milk, are sold Container 1. An object used for or capable of holding, esp. for transport or storage, such as a carton, box etc. 2. a large cargo-carrying standard-sized container that can be loaded from one mode of a transport to another 3. a container port; 4. a container ship. 5. Further, meaning of the word container used in Tariff Item 17 was considered by this Court in G. Claridge Company Ltd. v. Collector of Central Excise [1991 (52) E.L.T. 341 (S.C.)]. In that case, question was - whether egg trays and other similar products manufactured by the appellant can be regarded as containers under the relevant entries in the Central Excise Tariff. The Court considered the expression containers defined in the dictionaries and glossaries of Packaging Terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... words 'boxes, cartons, bags and other packing' and in Heading 48.18 of the new Tariff, the word containers is preceded by the words cartons, boxes and is followed by the words and cases . It is a well-accepted canon of statutory construction that when two or more words which are susceptible of analogous meaning are coupled together they are understood to be used in their cognate sense. It is based on the principle that words take as it were their colour from each other, that is, the more general is restricted to a sense analogous to a less general. [See : Dr. Devendra M. Surti v. State of Gujarat [1969 (1) SCR 235 at p. 240]. Considering the expression containers in the context in which it is used in the relevant tariff item, we are of the opinion that the said expression has to be construed to mean packing containers which are analogous to boxes and cartons, that is, an enclosed receptacle which can be used for storage and transportation of articles. Egg trays being receptacles which are not covered or enclosed cannot be used for transportation of articles and, therefore, they cannot be regarded as containers under the above mentioned entries in the Excise Tariff. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the manufacturer s label affixed thereto shall bear in clearly discernible characters, the name of the factory or a distinguishing mark, which may take the form of a special design whereby the origin of the matches can be traced. Specimens of all such labels shall be submitted to the Collector for his approval and record, before they are brought into use: Provided that the Collector may by an order in writing and subject to such limitations and conditions as may be prescribed by him in the order relax the provisions of this sub-rule. (4) On each case or packet of matches shall be legibly marked in ink or oil colour a progressive number, commencing with No. l, for each year and in different series for each class of matches, the number of gross of boxes or booklets contained in each case or packet and the grade of Central Excise Stamps affixed thereto. (5) Every box or booklet of matches, other than matches of the type known as Bengal Lights, issued for home consumption, shall have on the box or booklet, or on the manufacturer s label affixed thereto, a statement in clearly discernible character, of the retail price at which the manufacturer intends that the box o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ots mentioned in Heading No.24.02 of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) shall be delivered from any factory unless - (1) they are put into packets containing 5, 10, 25, 50 or 100 cigars or cheroots, as they case may be; (2) each such packet consists of a wooden, tin or cardboard box opening only at the top or of a paper wrapper top completely closed on all sides and with all sides and with all outer edges gummed down. 10. As stated in the Rule, a cigarette packet may contain 5, 10, 25, 50 or more cigarettes. That cigarette packet would be packed into a wooden, tin or cardboard box opening only at the top. 11. The learned counsel also referred to the decision rendered by this Court in Collector of Central Excise v. Punjab Anand Lamps Industries [1989 (43) E.L.T. 816] and contended that it was required to be decided whether such packets were commercially known and marketable as packets, boxes or containers? He submitted that the dictionary meaning of the word ;box is not required to be resorted to in the present case because cigarette packet is not commercially known in the market as box or carton and as such is not marketable as commodity. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e utilised for captive consumption for the end-product. In the present case, it is to be understood that in context, cigarette packet cannot be termed as container as discussed above but it can be considered as small packet or a box containing cigarettes. 13. With regard to marketability, it is to be stated that the decision in Asia Tobacco Co. Ltd v. Union of India [1992 (58) E.L.T. 418 (Madras)] upon which heavy reliance has been placed by the learned counsel, itself would indicate that cigarette packets are marketable. In that case, what was marketed and purchased was outer shell of cigarette packet for keeping in cigarettes but it was held not to be a container. Similarly, in Zupiter Printery and another v. Union of India etc. [1991 (34) ECR 7 (Delhi)], petitioner was manufacturing cigarette outer shells of printed sheets supplied to it by M/s Godfrey Philips India Ltd, a manufacturer of cigarettes. There are other matters revealing that such packets or parts thereof are manufactured as per the order and are sold. This leaves no doubt that such packets are manufactured and are marketable. 14. Further, for considering the meaning of the word box or the container , we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nse which people conversant with the subject matter with which the statute is dealing would attribute to it. But if a word in its popular sense and read in an ordinary way is capable of two constructions, it is wise to adopt such a construction as is based on the assumption that Parliament merely intended to give so much power as was necessary for carrying out the objects of the Act and not to give any unnecessary powers. In other words, the construction or the words is to be adapted to the fitness of the matter of the statute. 15. From the aforesaid discussion, it is clear that for interpreting tariff entries trade meaning as well as dictionary meaning is also required to be considered to reconcile and harmonise the tariff entry. In the present case, meaning of the word box for the purpose of interpreting the tariff item would be a case or receptacle usually rectangular or cylindrical and with a lid of wooden, metal, card etc. Hence, the description of cigarette packet would fit in the meaning of the word box as it is a rectangular receptacle with a lid with a protective case or a covering for cigarettes. Further, the meaning of the word container in context of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the above decision and in view of the fact that there is absolutely nothing to show that the shells and slides that would come to the carton and that packet or packing container is only a packet of cigarette therein and it cannot be said that the said items are also liable for duty and are not entitled to exemption as per the Notification. It is not in dispute that prior to the introduction of Tariff Item 17(4) by the Finance Bill of 1982, the outer shells and inner slides were classified under Tariff Item 68 and they were exempted from the whole of the duty. Even while considering the process of packing of cigarettes, it is seen that the packet is completed only after cigarettes have been put in it. Cigarettes are put first in the bundling paper and then placed in the slide. The slide along with the cigarettes is then inserted into the outer shell. The packet of cigarettes is thus completed at a stage when cigarettes are already in it. It is not in dispute that at this stage of assembly, it is not only the packet which is assembled but a packet of cigarettes containing cigarettes therein. Thus if this assembly is to be treated as manufacture, the manufacture is not of a packet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (supra), the Court held thus :- .....Considering the expression containers in the context in which it is used, the said expression has to be construed to mean packing containers which are analogous to boxes and cartons, that is, an enclosed receptacle which can be used for storage and transportation of articles. The shell, i.e. the product of the petitioner, is open from both the sides. In the absence of the slide this shell by itself will not be in a position to hold the cigarettes. It is only when the slide is inserted inside the shell that it can be called a box or container but without slide it is neither. Broad description of the shell does not fit in the expression of box or container. 21. From the aforesaid two decisions, it is apparent that a cigarette packet containing shell and the slide covering all sides would be a box. Further, there is no question of double taxation because excise duty on cigarettes is separately levied and in regard to packet containing cigarettes, duty is to be levied on the basis of Tariff Item 17. 21. The impugned order passed by the Tribunal is set aside to the aforesaid extent and the orders passed by the Assistant Collector of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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