1995 (5) TMI 176 - AT - Central Excise

Summary

Issues:
1. Eligibility for exemption under Notification 59/88 for printed cartons made of corrugated board.

Analysis:
The case involved two appeals challenging the Order-in-Appeal passed by the Collector of Central Excise (Appeals) concerning the eligibility of printed cartons for exemption under Notification 59/88. The appellants manufactured printed cartons using craft paper, duplex board, and corrugated sheet. The jurisdictional Assistant Collector denied the exemption, stating that the duplex board used did not qualify as a specified raw material under the notification. Additionally, he argued that the 3 ply corrugated board did not fall under Chapter 4808 as it did not have the required characteristics. The Collector (Appeals) upheld the Assistant Collector's orders, leading to the appeals before the Tribunal.

The appellants contended that a recent Tribunal decision in Collector of Central Excise v. Vijaya Packaging Industries supported their case. They argued that the duplex board, even if classified under a different heading, was essential for making the corrugated board, which fell under Heading 48.08 specified in the notification. They also referenced the HSN Explanatory Notes under Heading 48.08, supporting their position that the 3-ply board used in manufacturing the printed cartons should be classified under Heading 48.08 CETA.

The Departmental Representative acknowledged the relevance of the Tribunal's decision in Vijaya Packaging Industries but emphasized the need to determine whether the corrugated board used by the appellants fell under Heading 48.08. He reiterated the Assistant Collector's findings that the board did not meet the criteria under that heading.

The Tribunal carefully considered both parties' arguments and previous decisions. It noted that the immediate parent raw material was crucial in determining eligibility for exemption. Referring to the HSN Explanatory Notes, the Tribunal highlighted that the method of manufacturing the corrugated board was not the determining factor; rather, it was how the printed carton was produced. Citing the Tribunal's previous decision, the Tribunal concluded that if the material of the cartons fell under Heading 48.08, they would be classified accordingly. Therefore, the Tribunal found merit in the appeals and allowed them.