9911796707
TMI Blog2005 (9) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... 73/99/MAS : 2. The appellants are having their factory-cum-office premises at No. 90 and 92, Sankaran Avenue, Kamarajapuram, Velacherry Road, Chennai for the manufacture of letter brand of refill pens on job work, basis for M/s. G.M. Pens International Pvt. Ltd. Certain investigations were conducted by DGAE and consequently show cause notice dated 30-6-98 was issued to the appellants. It was alleged that the appellants had produced and cleared Blister packs to G.M. Pens International Ltd. (for short GMPIL) from 17-1-94 onwards without observing proper Central Excise formalities and without payment of excise duty. All the required raw materials were supplied by GMPIL to the appellants [M/s. M.F. Tools (for short MFT)] till December, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of the Blister card is about 0.82 paise while that of the Blister sheet is only 0.10 paise per piece. Further, it is the card that gives strength to the packing and contains the product details. Therefore, the essential character and value for the Blister packs are attributed by the card made of paper. According to Rules of interpretation of Excise Tariff, classification of goods consisting of more than one material or substance shall be according to the principles contained in Rule (3), which specifies that the classification shall be made based on the material of event which gave the product its essential character. 7.3. MFT manufactures Blisters out of PVC plastic sheets supplied by GMP and uses the Blister as a component par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the above proceedings against M/s. M.F. Tools and Engineering and M.F. Tools & Works, Chennai. The appellants are aggrieved over the findings of the adjudicating authority that the Blister is classifiable under Heading 39.23.92 as article for packing of goods plastic. 3. Shri J. Sankar Raman, Ld. Advocate appeared for the appellants and Smt. R. Bhagya Devi, Ld. SDR for the Revenue. 4. Ld. Counsel invited our attention to the Circular No. 11/89 dated 13-3-1999 issued by the Ministry of Finance. The above Circular clarifies the excisability of tetra packs, bricks, pouches, containers made out of paper boards, plastic etc. Ld. Counsel urged that the Blister packs for use only at the time of packing of the jetter pens otherwise t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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." We find that there is much force in the contention of the appellants. The Blister cannot be called as a marketable commodity. They come into existence at the time of packing of the jetter pen. They do not have any independent existence. In that sense they are not at all marketable. Hence, we hold that the blister packs are not excisable commodity. Therefore, the finding of the original authority that they are classifiable under Heading 3923.90 is not correct. Hence we a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of being taken out and marketed as a separate product in its own right, it is not excisable. 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. Further, the Ministry's Circular No. 11/89 dated 13-3-1989 has given the example of aluminium foil caps arising in the course of sealing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
