2024 (9) TMI 1591 - AT - Central Excise

Classification of corrugated board - whether corrugated board cleared by the respondent independently without corrugated box is classified under Tariff Item 48191090 and accordingly not eligible for exemption Notification No.04/2006-CE dated 01.03.2006 as claimed by the appellant treating the classification under 48191010 as corrugated cartons, boxes and cases? - HELD THAT - It can be seen that 481910 covers cartons, boxes and cases, of corrugated paper and paperboard, 48191010 covers boxes, 48191090 is other. However even 48191090 mentioned other but on reading entry under 481910 except boxes all other items such as cartons and cases of corrugated paper and paperboard falls under 48191090. When this be so then even though goods of 48191090are clearly covered under the exemption Notification No.04/2006-CE under entry No.96E. Therefore, firstly it is opined that even if classification suggested by the Revenue under 48191090 is accepted then also the goods covered under that sub heading is covered under exemption. Even if the corrugated sheet as in the appellant case cleared without having boxes, the same is appropriately classifiable under 48081000. The rate of duty on the goods under 48081000 as well as under 48191010 read with Notification No.04/2006-CE are same during the relevant period and for this reason the adjudicating authority has rightly dropped the demand raised in the show cause notice. The adjudicating authority is agreed to classify the goods in question i.e. corrugated sheet, platecleared without corrugated boxes under 48081000. There are no infirmity in impugned order. Hence, the impugned order is upheld - Revenue s appeal is dismissed.

Issues: Classification of corrugated board cleared independently without corrugated box under Tariff Item 48191090 and eligibility for exemption Notification No.04/2006-CE.

Analysis:
The judgment by the Appellate Tribunal CESTAT Ahmedabad involved a dispute regarding the classification of corrugated board cleared independently without a corrugated box under Tariff Item 48191090 and its eligibility for exemption under Notification No.04/2006-CE. The appellant claimed the classification under 48191010 as corrugated cartons, boxes, and cases, while the adjudicating authority considered the correct classification to be under 48081000, leading to the dropping of the demand under 48191090. The Revenue filed an appeal challenging this decision.

The Revenue argued that the commissioner erred in rejecting the classification under 48191090 as proposed in the show cause notice, emphasizing the duty demand along with interest and penalty. On the other hand, the Respondent contended that the corrugated plates of the board are integral to corrugated boxes and should be classified under 48191010, justifying the Exemption Notification No.04/2006-CE. Even if not accepted, the Respondent argued that the correct classification would be under 48081000, attracting the same duty rate as discharged under 48191010.

Upon careful consideration of both parties' submissions and a thorough review of the records, the Tribunal observed that the appellant had claimed the corrugated plates under 48191010 and availed partial exemption under the relevant entry. The Tribunal noted that goods falling under 481910, including cartons, boxes, and cases of corrugated paper and paperboard, were partially exempted under the said notification. Even though the Revenue's classification under 48191090 was considered, the Tribunal found that the goods were covered under the exemption, and if not classified under 48191010, they would appropriately fall under 48081000.

The Tribunal highlighted that the entry under 4808, specifically 48081000 for corrugated paper and paperboard, was suitable for the appellant's case, even if the corrugated sheet was cleared without boxes. Given that the duty rates under 48081000 and 48191010 with the exemption notification were the same during the relevant period, the adjudicating authority's decision to classify the goods as corrugated sheet under 48081000 was deemed correct. Consequently, the Tribunal upheld the impugned order, dismissing the Revenue's appeal.

In conclusion, the judgment clarified the classification of corrugated board cleared independently without a corrugated box under Tariff Item 48191090 and its eligibility for exemption under Notification No.04/2006-CE, affirming the decision to classify the goods under 48081000 and dismissing the Revenue's appeal.

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