2002 (11) TMI 180 - AT - Customs

Summary

Issues Involved:
1. Classification of "Indian filter king hinged lid cartons."
2. Applicability of Chapter Note 1(d) of Chapter 76 and Chapter Note 1(m) of Chapter 48.
3. Relevance of the judgment in Hindustan Packaging Co. Ltd. v. CCE Vadodara.
4. Determination of classification under Customs Tariff Heading 48.19 versus 76.07.

Issue-wise Detailed Analysis:

1. Classification of "Indian filter king hinged lid cartons":
The primary issue revolves around the correct classification of the imported item "Indian filter king hinged lid cartons." The Commissioner (Appeals) classified the item under Customs Tariff Heading 48.19, while the importer argued for classification under Heading 76.07.

2. Applicability of Chapter Note 1(d) of Chapter 76 and Chapter Note 1(m) of Chapter 48:
The appellant's counsel argued that Chapter Note 1(d) of Chapter 76 should be applied for classification under 76.07. Chapter Note 1(m) of Chapter 48 excludes "metal foil backed with paper or paperboard" from Chapter 48, implying that items backed with metal foil should not be classified under Chapter 48. The counsel contended that Heading 48.19 should cover only ordinary/plain cartons and boxes, not those backed with metal foil.

3. Relevance of the judgment in Hindustan Packaging Co. Ltd. v. CCE Vadodara:
The appellant cited the judgment in Hindustan Packaging Co. Ltd. v. CCE Vadodara, where it was held that aluminum foil backed by paper and polyethylene is classifiable under Chapter sub-heading 7606.00 of the Central Excise Tariff Act, not as "laminated paper" under sub-heading 4811.29. This judgment was used to support the argument that the imported item should be classified under Chapter 76.

4. Determination of classification under Customs Tariff Heading 48.19 versus 76.07:
The Tribunal carefully considered the submissions and records. It noted that Chapter Note 1(m) of Chapter 48 explicitly excludes "metal foil backed with paper or paperboard." The item in question, being backed by aluminum foil, fits this exclusion. Chapter Note 1(d) of Chapter 76 describes products like plates, sheets, strips, and foil, including those backed with paper or paperboard, which do not assume the character of articles of other headings.

The Tribunal concluded that the imported sheets, backed by aluminum, had not acquired the characteristics of cartons or boxes under Heading 4819.20. The explanatory notes under Heading 7607.20 support the classification of items backed with paper and paperboards used for making fancy goods under Chapter 76. The Tribunal also referred to the Harmonized System of Nomenclature (HSN), which supports the appellant's claim.

The Tribunal noted that the issue is no longer res integra, as the Larger Bench had already ruled that aluminum foil backed by paper or polyethylene is classifiable under Chapter 7606.00, not under 4811.29 as "laminated paper." This judgment was followed, and the appeal was allowed by setting aside the impugned order.

Conclusion:
The Tribunal allowed the appeal, setting aside the impugned order and confirming that the imported item "Indian filter king hinged lid cartons" should be classified under Chapter 76, specifically under Heading 7606.00, as supported by the judgment in Hindustan Packaging Co. Ltd. v. CCE Vadodara. The Tribunal's decision was based on the clear exclusion provided in Chapter Note 1(m) of Chapter 48 and the detailed analysis of the relevant Chapter Notes and HSN.