1998 (8) TMI 158 - AT - Central Excise

Summary

Issues:
Classification of paper slides/slits for packing cigarettes under Central Excise Tariff sub-heading 4818.19 - whether excisable goods or not.

Detailed Analysis:

Issue 1: Classification of Paper Slides/Slits
The primary issue in this case was whether paper slides/slits manufactured by the respondents for packing cigarettes are excisable goods under Central Excise Tariff sub-heading 4818.19. The Revenue contended that the slides/slits, though incomplete articles, had essential characteristics of complete articles like packing cases, making them excisable. The Assistant Collector upheld this view, demanding duty payment. However, the Collector of Central Excise (Appeals) overturned this decision, citing judgments from the Delhi High Court and the Madras High Court. The Tribunal was tasked with determining the classification of these paper slides/slits.

Analysis:
The Tribunal considered the arguments presented by both sides. The Revenue highlighted a previous Tribunal decision that classified similar slides as excisable goods under Central Excise Tariff sub-heading 4818.90. On the other hand, the respondents' counsel relied on the High Court judgments stating that the slides were not marketable and hence not liable for duty. The counsel argued that the slides, made from printed paper/paper board with specific branding details, were not intended for sale in the market. Additionally, reference was made to a Larger Bench decision regarding the marketability of outer shells and sleeves for cigarette packets.

Decision:
After careful consideration, the Tribunal referred to a previous case involving the same assessee where it was established that paper slides for cigarette packets were indeed marketable. The Tribunal noted that the slides had specific names, were integral parts of cigarettes, and were regularly used in the industry. It was also observed that the respondents purchased shells with similar printed details, indicating marketability. Therefore, the Tribunal upheld the classification of paper slides/slits for cigarette packets as excisable goods under Central Excise Tariff sub-heading 4818.90, in line with its previous decision and the marketability criteria established.

Conclusion:
In conclusion, the Tribunal ruled in favor of the Revenue, determining that the paper slides/slits manufactured by the respondents were excisable goods falling under Central Excise Tariff sub-heading 4818.90. The appeal was disposed of accordingly, affirming the classification of the slides as subject to duty.