2005 (7) TMI 481 - AT - Central Excise

Summary

Issues:
1. Assessment of duty on collapsible aluminium tubes without caps.
2. Interpretation of Tariff Item 27(f) regarding containers chargeable to duty.
3. Applicability of adding the value of caps in the assessable value for duty calculation.

Analysis:

1. The case involved the assessment of duty on collapsible aluminium tubes sold without caps, where the department alleged short levy of duty due to not adding the value of caps in the assessment. The appellants sent the tubes for capping to another company, and the department claimed duty should be paid after including the cap value.

2. The advocate for the appellants argued that as per Tariff Item 27(f), collapsible aluminium tubes qualify as containers chargeable to duty even without caps. Citing a precedent case, it was contended that the value of caps should not be included in the assessable value for duty calculation. The Tribunal had previously ruled that the value of caps fitted to such tubes is not to be included in determining the assessable value.

3. The Tribunal analyzed the definition of "containers" under Tariff Item 27(f), which includes collapsible tubes among other items. It was concluded that collapsible tubes without caps still qualify as containers, and there is no requirement for them to be cleared with caps for duty payment purposes. Relying on the precedent set by a previous decision, the Tribunal set aside the Collector's order and allowed the appeal, stating that the value of caps should not be added to the assessable value for duty calculation.

This judgment clarifies the interpretation of Tariff Item 27(f) in relation to collapsible aluminium tubes and the requirement, or lack thereof, to include the value of caps in the duty assessment process.