1997 (2) TMI 274 - AT - Central Excise

Summary

Issues: Classification of metal tops, bottoms, and lids for containers under Central Excise Tariff Act, 1985.

The judgment by the Appellate Tribunal CEGAT, New Delhi, involved the classification of metal tops, bottoms, and lids for containers under the Central Excise Tariff Act, 1985. The appellant, M/s. Jain Packaging (P) Ltd., sought classification of these metal components under Heading No. 83.09, while the Revenue classified them under sub-heading No. 8312.12 as parts of containers of base metal. The dispute revolved around whether these metal parts were to be classified under the parent articles as per Note 1 of Chapter 83 or considered parts of general use as per Note 2 of Section XV of the Tariff.

The Tribunal found that the metal tops, bottoms, and lids were specifically manufactured for metal containers and were not parts of general use. These components were integral to the metal containers and were essential for packaging goods. The Tribunal noted that the appellants themselves stated that customers ordered only the tops and bottoms for containers, emphasizing the interdependence of these metal components with the containers. Therefore, the Revenue's classification under Heading No. 8312.12 was deemed appropriate.

In considering the arguments presented by the appellants that the metal tops, bottoms, and lids should be classified under Heading No. 83.09, covering stoppers, caps, and lids, the Tribunal disagreed. It clarified that these components were not merely packing accessories but integral parts of the containers themselves. Citing precedents such as the Jyoti Ltd. case and the Universal Luggage Mfg. Co. Ltd. case, the Tribunal highlighted the distinction between accessories and integral parts, further supporting the classification under Heading No. 8312.12.

The Tribunal also addressed the appellants' submission regarding customers using paper containers with metal tops and bottoms. However, without concrete evidence or supporting material, the Tribunal could not consider this proposition. Ultimately, the Tribunal upheld the findings of the Collector of Central Excise (Appeals), Bombay, who had classified the metal components under sub-heading 8312.12 based on the provisions of Chapter 83 and Note 2 of Section XV. Consequently, the appeal by M/s. Jain Packaging (P) Ltd. was rejected, affirming the Revenue's classification of the metal tops, bottoms, and lids under Heading No. 8312.12 as parts of containers of base metal.