1998 (12) TMI 132 - AT - Central Excise

Summary

Issues:
Revenue's appeal against the extension of benefit of Notification 180/88 to various items categorized as utensils of aluminum by the Collector of Central Excise (Appeals), Ahmedabad.

Analysis:

1. Issue of Extending Benefit of Notification 180/88:
The Revenue challenged the order of the Collector of Central Excise (Appeals) extending the benefit of Notification 180/88 to items listed, arguing that the items were not utensils as per the Shorter Oxford English Dictionary and a previous Tribunal order. The Tribunal analyzed the definition of utensils from the dictionary, emphasizing that utensils are receptacles for substances used in food preparation or serving, suitable for carrying by hand. Upon examination, the Tribunal concluded that certain items, such as Dhokla Dabbas, Ghamela dabbas, Papad dabbas, etc., could not be considered utensils of aluminum but rather containers. Consequently, the Tribunal held that the lower appellate authority's extension of benefits to certain items was incorrect in law. It was also noted that the Collector (Appeals) had already excluded certain items from the Notification's coverage.

2. Non-Appearance of Respondents:
Despite issuing a hearing notice, none of the respondents appeared during the proceedings. In their absence, the Tribunal heard the arguments presented by the learned SDR and examined the records to reach its decision.

3. Decision and Modification of Impugned Order:
Based on the analysis of the definition of utensils and containers, the Tribunal modified the impugned order to exclude items at specific serial numbers (1 to 10, 19, 26, 27, and 34) from the coverage of Notification 180/88. The appeals were disposed of accordingly, upholding the Revenue's appeal and adjusting the benefit extension in line with the Tribunal's interpretation of utensils and containers.

This judgment clarifies the distinction between utensils and containers based on their function and design, emphasizing the specific criteria for an item to be considered a utensil. The decision highlights the importance of adhering to legal definitions and precedent while interpreting statutory notifications and extends the principle of classification to determine the applicability of benefits under relevant regulations.