2007 (8) TMI 26 - AT - Central Excise

Classification - Department contended that appellant good i.e. composite container classifiable under SH 4818.13 not under SH 4818.19 - Held that department contention was not correct and set aside

Summary

Issues:
Classification of Composite Containers under sub-heading 4818.13 or 4818.19.

Analysis:
1. The reference was made to the Larger Bench to resolve the conflicting issue of classification of Composite Containers. Two conflicting decisions existed in the appellant's case, with one division Bench classifying the containers under sub-heading 4818.13 and another under sub-heading 4818.19.

2. The appellants, engaged in manufacturing Plain Composite Containers with printed labels, claimed classification under sub-heading 4818.12 but were classified by the department under sub-heading 4818.19. The Commissioner (Appeals) upheld the classification under sub-heading 4818.19, setting aside earlier classifications under sub-heading 4818.13.

3. The Tribunal resolved the dispute by upholding the classification under sub-heading 4818.19 as claimed by the appellants. The department challenged this decision, but no further appeal was filed, settling the matter finally.

4. Show cause notices were issued demanding duty for the disputed period, with the appellants claiming correct classification under sub-heading 4818.19.

5. The Additional Commissioner confirmed the demand on composite containers under sub-heading 4818.19, relying on a favorable decision for the Revenue. The Commissioner (Appeals) rejected an appeal against this decision.

6. The Bench was tasked with determining the classification of Plain Composite Containers with printed labels under sub-headings 4818.13, 4819.12, or 4818.19, as claimed by the appellants.

7. The disputed containers were composed of three parts, with printed labels pasted on them, affecting their classification under different sub-headings.

8. The renumbering and restructuring of Heading 48.18 as Heading 48.19 from 1-3-1988 onwards impacted the classification of the containers under sub-headings 4818.13 and 4819.12.

9. The appeal covered the period from January 1987 to July 1988, making the entries under Heading 48.18 and 48.19 relevant for classification.

10. The Tribunal concluded that plain composite containers pasted with printed labels should be classified under sub-heading 4818.19 up to 1-3-1988 and under sub-heading 4819.19 thereafter.

11. Previous judgments and trade notices supported the classification of similar composite containers under specific sub-headings, providing legal precedent for the current dispute.

12. The Tribunal's judgment in the appellant's case favored the classification under sub-heading 4818.19, and the Bench upheld this classification for the disputed products.

This detailed analysis outlines the classification dispute of Composite Containers under different sub-headings, highlighting the legal interpretations, precedents, and decisions that led to the resolution in favor of the appellants.