1995 (7) TMI 148 - AT - Central Excise

Summary

Issues: Classification of printed labels and wrappers for duty chargeability.

The case involved an appeal against the order of the Collector (Appeals) regarding the classification and duty chargeability of printed labels and wrappers. The appellants argued that the printed labels, which were flat pieces of paper used for indicating product details, should be classified under 4818.90 and exempted from duty under specific notifications. They relied on a judgment from the Bombay High Court to support their classification. Additionally, the appellants contended that the printed wrappers should also be classified as printed labels under 4818.90 and be exempt from duty based on previous tribunal decisions and notifications.

The respondent, however, argued that the printed labels were actually containers or cases, not just labels, as they were used to contain cigarettes within an aluminum foil wrapper. Therefore, the respondent asserted that the labels should be classified as cigarette cases under 4818.13 and were not eligible for the duty exemption applicable to printed labels. Regarding the wrappers, the respondent contended that they were printed paper used for wrapping, falling under Chapter 48 classifications and not qualifying for the benefit of specific notifications due to lack of evidence showing their converted paper status.

The Tribunal considered the arguments presented by both parties. For the printed labels, the Tribunal agreed with the respondent that the product functioned as a container or case rather than a mere label, leading to their classification under 4818.13 and exclusion from duty exemptions meant for labels. As for the wrappers, the Tribunal acknowledged their use for wrapping but also noted that they were a converted type of paper used for specific purposes. The Tribunal referenced a circular from the Board recognizing such conversion activities and concluded that the wrappers should be classified under 48.17 as articles of paper used for wrapping, not qualifying for the benefit of a specific notification applicable post-March 1987.

Ultimately, the appeal was disposed of based on the above analysis, affirming the classification of printed labels as containers and the classification of wrappers as converted paper articles used for wrapping, without eligibility for certain duty exemptions.