1988 (5) TMI 107 - AT - Customs

Summary

Issues Involved:
Classification of egg trays manufactured by M/s. Mohan Paper Mouldings (P) Ltd. under the First Schedule to the Central Excises and Salt Act, 1944 and the First Schedule to the Central Excise Tariff Act, 1985.

Detailed Analysis:

Issue 1: Classification under the Central Excises and Salt Act, 1944
- The Superintendent of Central Excise initially classified egg trays as packing containers eligible for exemption under Notification No. 66/82-C.E.
- The Collector of Central Excise reviewed and reclassified egg trays as articles of pulp instead of paper, placing them under Item 68 due to the manufacturing process.
- M/s. Mohan Paper Mouldings (P) Ltd. challenged this classification, arguing that egg trays were paper products based on commercial understanding and trade descriptions.
- The tribunal upheld the Collector's classification, stating that egg trays did not involve the creation of paper or paper board during manufacturing and fell under Item 68.

Issue 2: Classification under the Central Excise Tariff Act, 1985
- M/s. Mohan Paper Mouldings (P) Ltd. sought classification under sub-heading 4818.19 for egg trays, considering them as containers.
- The Assistant Collector classified egg trays under sub-heading 4818.90 as "Other articles of paper pulp," which was upheld by the Collector (Appeals).
- The tribunal disagreed with the Collector (Appeals) and reclassified egg trays under sub-heading 4818.90, considering them as articles of paper pulp rather than containers.
- The tribunal emphasized that egg trays did not fall under the specific articles listed in sub-heading 4818.19, leading to the revised classification under sub-heading 4818.90.

Conclusion:
- The tribunal upheld the classification of egg trays under the Central Excises and Salt Act, 1944 as per the Collector's decision.
- For the Central Excise Tariff Act, 1985, the tribunal set aside the Collector (Appeals) decision and classified egg trays under sub-heading 4818.90 as "Other articles of paper pulp," aligning with the manufacturing process and nature of the product.
- The tribunal highlighted the distinction between paper products and articles of paper pulp, emphasizing the specific classification criteria under the respective tariff acts.