1996 (9) TMI 211 - AT - Central Excise

Summary

Issues:
Classification of printed corrugated cartons/boxes under Central Excise Tariff headings 4805.30, 4818.12, and eligibility for exemption under Notification No. 140/86-CX.

Analysis:
The main issue in this case was the classification of printed corrugated cartons/boxes under the Central Excise Tariff headings and their eligibility for exemption under Notification No. 140/86-CX. The Revenue argued that the base material for manufacturing cartons fell under heading 4805.30, making the products classifiable under 4818.13, not eligible for exemption. The Respondents contended that the material from which the boxes are made is crucial, citing relevant cases supporting their argument.

The Tribunal considered whether printed cartons are made wholly out of paper or paperboard, emphasizing the material from which the finished product is directly made. It was noted that so long as printed cartons are made from corrugated paper or paperboard, they would merit classification under heading 4818.12 and be entitled to exemption. The Tribunal rejected the Revenue's claim that the base material should determine classification, focusing on the material the impugned goods are made of, not the mother material.

It was established that once Duplex Board is corrugated, its legitimate parentage is under Chapter 4808.10, from which corrugated cartons/boxes are made. Therefore, printed cartons/boxes made out of corrugated boxes would be covered under tariff heading 4818.12. The Tribunal upheld the impugned order, rejecting the Revenue's appeal based on the classification of the impugned goods in terms of heading 4818.12 and the material they are made of, not the raw material of the parentage.