1996 (9) TMI 371 - AT - Central Excise

Summary

Issues: Classification of Card Cans under Central Excise Tariff Act, 1985

Classification of Product:
The appeal pertains to the classification of Card Cans manufactured by M/s. Unipol Plastic Industries Pvt. Ltd. The Plastic Card Cans were produced using High Density Polythelene and Low Density Polythelene, and were made out of duty paid excisable goods falling under Heading Nos. 39.01 to 39.12 of the Central Excise Tariff Act, 1985. The appellant declared the classification under Heading No. 3922.90, while the Revenue sought to classify them under Heading No. 8448.00, which covers auxiliary machinery for use with specific machines.

Interpretation of Section Notes:
The judgment analyzed the Section Notes to Section XVI, under which Chapter 84 falls, to determine the classification of the Card Cans. It was noted that Section XVI does not cover certain supporting products like bobbins or spools, which are classified under other sections of the Tariff. This analysis was crucial in understanding the appropriate classification for the Card Cans.

Manufacture Process and Classification:
The Assistant Collector of Central Excise modified the classification list based on the appellants' manufacturing process description. The appellants primarily manufactured Plastic Sheets that could be used for various purposes with additional accessories purchased from the market. The tribunal concluded that the Card Cans did not qualify as machinery parts under Chapter No. 84 but were essentially articles of plastics. The judgment referenced Notification No. 132/86-C.E., which provided conditions for duty exemption for articles of plastics made from specific materials.

Procedural Irregularities:
The Collector of Central Excise (Appeals) highlighted that the Assistant Collector did not issue a show cause notice before changing the classification, which was deemed necessary. Additionally, it was noted that no appealable order was issued after modifying the classification list. Despite these procedural irregularities, the tribunal focused on the merits of the case to determine the appropriate classification.

Final Decision:
After considering all relevant aspects, the tribunal concluded that the Card Cans should be classified under sub-heading No. 3922.90 and not under Heading No. 84.48 as contended by the Revenue. The appeal was disposed of accordingly, with the decision favoring the appellant's classification under the Central Excise Tariff Act, 1985.