1997 (4) TMI 206 - AT - Central Excise

Summary

Issues: Classification of steel ammunition boxes under the Central Excise Tariff Act.

Analysis:
1. The issue involved in this case pertains to the classification of steel ammunition boxes used by the Ministry of Defence. The Collector (Appeals) classified the goods under C.T.A. Chapter 7308.90, stating that they were meant for storage, not for sale, and thus not covered under chapter Heading 83.12 for containers intended for packing goods for sale.

2. The Revenue argued that the Collector (Appeals) erred in his classification, contending that the goods should be classified under chapter sub-heading 8312.90, as they are containers of base metal not covered under sub-heading Nos. 8312.11, 8312.12, and 8312.19. The Revenue emphasized that the condition of being "ordinarily intended for packaging goods for sale" applies only to specific sub-headings within 83.12.

3. On behalf of the Respondent, it was argued that since the ammunition boxes were not intended for sale but only for storage, they should not be classified under Tariff Heading 83.12, which is meant for containers ordinarily intended for packaging goods for sale.

4. The Tribunal analyzed the Central Excise Tariff working schedule and concluded that Heading 83.12 pertains to "containers of base metal" and that the condition of being "ordinarily intended for packaging goods for sale" applies to specific sub-headings within 83.12. As the steel ammunition boxes did not fall under those specific sub-headings, they were correctly classified under 83.12.90, which is a sub-classification of containers of base metal without the condition of being intended for sale.

5. Consequently, the Tribunal found merit in the Revenue's appeal and set aside the Collector (Appeals) order, allowing the Revenue's appeal regarding the classification of the steel ammunition boxes under Heading 83.12.