1995 (5) TMI 145 - AT - Central Excise

Summary

Issues:
- Classification of corrugated printed cardboard containers under Notification 66/82
- Interpretation of whether the items are considered as boxes or containers

Analysis:
1. The appeal was filed by the Revenue against the order of the Collector of Central Excise (Appeals), Calcutta regarding the extension of benefits under Notification 66/82 to corrugated printed cardboard containers. The item in question falls under Tariff Item 17(3) of the Schedule to the Central Excise Tariff, and the dispute revolves around whether these items should be classified as containers or boxes.

2. The respondents, manufacturers of card board printed boxes and corrugated board, filed a classification list claiming exemption under Notification 66/82 for corrugated 5 ply printed card board boxes made out of kraft paper. The Assistant Collector initially denied the benefit of the Notification, considering the items as card board boxes falling under Item 17(3). However, the lower appellate authority classified them as containers other than boxes and granted complete exemption under Notification 66/82.

3. Upon review, the Collector (Appeals) found that the card board cases in question were closed on all four sides but had open bottoms and tops with flaps for closure. The Collector emphasized that when closed, the cases functioned as containers. Definitions of "box" from industry standards and dictionaries were examined, highlighting that a box is a rigid container with closed faces, typically used for transportation, and can have a base and lid.

4. The Tribunal considered the commercial understanding and common parlance of the term "box" and "container." Referring to a Supreme Court case, it was noted that containers, in the context of the relevant Tariff Item, are analogous to boxes and cartons, serving as enclosed receptacles for storage and transportation. The Tribunal concluded that the corrugated printed cardboard boxes in question fell under the definition of boxes and were excluded from the benefit of Notification 66/82.

5. In light of the above analysis, the Tribunal set aside the previous order and allowed the appeal filed by the Revenue, determining that the corrugated 5 ply printed card board boxes made out of kraft paper were indeed classified as printed card board boxes, not containers, and thus not eligible for the benefits under Notification 66/82.