1983 (3) TMI 258 - AT - Central Excise

Summary

Issues:
- Appeal against the order of the Appellate Collector of Central Excise, Calcutta regarding duty short-levied for plastic caps attached to collapsible tubes.
- Interpretation of the definition of "containers" under the Central Excise Tariff.
- Whether the weight of plastic caps should be added to the weight of aluminium collapsible tubes for assessing Central Excise duty.

Analysis:
1. The appeal was filed against the order of the Appellate Collector confirming the demand for duty short-levied for plastic caps attached to collapsible tubes. The appellant argued that they do not manufacture the plastic caps but buy them from the market, already duty paid, and attach them to the aluminium collapsible tubes. The appellant contended that the weight of the plastic caps should not be added to the weight of the aluminium tubes for assessing Central Excise duty.

2. The definition of "containers" under the Central Excise Tariff was a crucial point of contention. The definition included collapsible tubes as containers. The appellant argued that the plastic caps, being a separate entity made of plastic, should not be considered part of the aluminium collapsible tubes for the purpose of assessing duty. The appellant emphasized that even with the caps attached, the collapsible tubes remained incomplete as the bottoms were open, necessitating sealing after filling.

3. The Tribunal analyzed the situation where duty-paid caps were fitted onto the collapsible tubes. It was observed that the mere mechanical process of fitting the caps did not change their nature from plastic to aluminium. The Tribunal disagreed with the Department's argument that without the caps, the collapsible tubes could not be treated separately and had to be considered part of the container.

4. The Tribunal held that the interpretation of the definition of containers could not be stretched to include the plastic caps as part of the aluminium collapsible tubes. Even without the caps, the tubes qualified as aluminium collapsible tubes within the definition of containers. The Tribunal emphasized that the caps, being separately manufactured and duty paid, had to be treated distinctly for charging the weight-based portion of the Excise duty on aluminium as per the Central Excise Tariff.

5. Consequently, the Tribunal concluded that the order of the Appellate Collector could not be sustained. The appeal was accepted, and the impugned order was set aside, ruling in favor of the appellant regarding the treatment of plastic caps attached to aluminium collapsible tubes for the purpose of assessing Central Excise duty.