2004 (10) TMI 473 - AT - Central Excise

Summary

Issues:
Classification of drum-shaped boxes under sub-heading 4819.19 or 4410.90 of the CETA.

Detailed Analysis:
In this appeal, the main issue revolves around the classification of drum-shaped boxes manufactured by the appellants. The appellants argued for classification under sub-heading 4819.19 of the CETA, attracting a duty rate of 16%. Conversely, the department contended for classification under sub-heading 4410.90, resulting in a nil rate of duty. The adjudicating authority and the Commissioner (Appeals) sided with the department's classification, directing modification in the appellants' declaration from 28-2-1999.

Upon hearing both sides, it was established that the appellants produce drum-shaped boxes using plywood and paperboard. The top and bottom parts of the boxes consist of plywood, while the ring is made of paperboard. The weight of plywood is twice that of paperboard. The appellants argued against classifying based on material predominance, citing HSN notes related to heading 48.19. However, this argument was dismissed as the boxes are marketed as boxes, not Kraft paper drums, primarily made from plywood. The round shape is formed by paperboard attached to plywood lids. Without the plywood lids, the product would essentially be a paperboard pile, emphasizing the predominant use of plywood in constructing the boxes.

Referring to Board Circular No. 18/90-CX, dated 9-7-1990, brought up by the appellants' consultant, it was determined that the circular concerning the classification of composite paper containers for defence ammunition stores did not support the appellants' plea. The circular pertained to different products, failing to bolster the appellants' case.

Ultimately, the Appellate Tribunal upheld the lower authorities' classification of the product under sub-heading 4410.90 of the CETA. Consequently, the impugned order was affirmed, and the appeal by the appellants was dismissed for lacking merit.