1995 (9) TMI 157 - AT - Central Excise

Summary

Issues:
Classification of inner frames for cigarette packets under Central Excise Tariff.

Detailed Analysis:

The judgment revolves around the classification of inner frames for cigarette packets manufactured by the appellant company. The department classified the goods under sub-heading 7116.90 of the Central Excise Tariff, while the appellant contended that they should be classified under Heading 7607.30 of the Tariff in conjunction with Notification 180/88. The appellant's representative argued that the inner frames were essentially aluminum foil backed with board, cut to shape, and perforated for folding and support within the cigarette packet. He cited relevant headings and sub-headings to support the classification under sub-heading 76.30, emphasizing that the goods did not fall under the residuary entry 7616.90. Additionally, he referenced a Delhi High Court decision and a Tribunal decision to strengthen his argument.

On the other hand, the Departmental Representative argued that the goods were more than simple foil backed with board, pointing out that they were gold-colored and had not been perforated as claimed by the appellant. He relied on a Tribunal decision regarding slits for cigarette packets to support his classification under a different sub-heading.

The judgment delves into the relevant Central Excise Tariff entries during the period in question, specifically Heading 7607 and its sub-headings. It highlights that if the goods consist of aluminum foil backed with paperboard and the foil thickness does not exceed 0.2 mm, they should be classified under Heading 76.07. The Tribunal found no dispute regarding these facts and rejected the Departmental Representative's argument about the color indicating a different process. The judgment also refers to a previous decision supporting the classification under Heading 7607.00 and distinguishes the I.T.C. case cited by the Departmental Representative as irrelevant.

Ultimately, the Tribunal concluded that the goods should be classified under Heading 7607.30 and could benefit from Notification 180/88 under specific entries. As the appeals succeeded on this point, the Tribunal did not address the alternative plea raised by the appellant's advocate, and the appeals were allowed accordingly.