1994 (3) TMI 178 - AT - Central Excise

Summary

Issues:
Interpretation of duty liability on printed paper board articles under a specific tariff item and notification.

Analysis:
The judgment by the Appellate Tribunal CEGAT, New Delhi dealt with the question of whether certain printed paper board articles fall under the duty liability as per a particular tariff item and notification. The issue revolved around whether items like outer shells, outer shells with inner slides, and hinge lids cut out with inner frames, which are printed cartons containing paper and paper board, should be subject to duty under the erstwhile Tariff Item 17(4) read with Notification No. 66/82-C.E., dated 28-2-1982.

The appellants argued, based on previous High Court judgments, that items like outer shells and inner frames should not be liable to duty as per the said tariff entry and notification. They relied on the decisions of the High Courts of Delhi and Madras in cases involving similar issues. The appellants contended that the reasoning in those judgments supported their position that items like hinge lids cut out and inner frames should not attract duty.

The Tribunal examined the arguments presented by both sides. The learned SDR for the Revenue conceded that outer shells alone should not be dutiable based on the Delhi High Court's decision in Zupiter Printery. However, the SDR argued that when outer shells and inner slides are manufactured together, they should be subject to duty. Similarly, if hinge lids cut out and inner frames are produced in the same factory, they should also be dutiable according to the SDR.

The Tribunal considered the reasoning of the Madras High Court in the Asia Tobacco case, which concluded that outer shells and inner slides should not be subject to duty. The Tribunal found that the same reasoning applied to hinge lids cut out and inner frames. Therefore, following the decisions of the High Courts, the Tribunal allowed the appeals of the assessees and dismissed the appeals of the Revenue.

In conclusion, the judgment clarified the duty liability on printed paper board articles, specifically addressing the dutiability of items like outer shells, outer shells with inner slides, hinge lids cut out, and inner frames under the relevant tariff item and notification. The decision was based on the interpretation of previous High Court judgments and the application of their reasoning to the present case.