Section 37-B/Order No. 8/92 - Central Excise - 54/12/91-CX.1

Section 37-B/Order No. 8/92 F. No. 54/12/91-CX.1 Dated 24-9-1992 Government of India Central Board of Excise Customs New Delhi Subject : Section 37-B/Order No. 8/92. The trade has represented on the issue of lack of uniformity in the classification of HDPE strips and tapes having width not exceeding 5mm and sacks made therefrom. Such products have been classifed either under Chapter 39 or 54 or 63 of the Central Excise Tariff Act, 1985, (henceforth referred to as Tariff). This has given rise to number of disputes on correct classification. 2. In one of such disputes, the High Court of Madhya Pradesh in the case of M/s. Raj Packwell Ltd., Indore v. Union of India in Miscellaneous Petition No. 1205/88, decided on 7-11-1989 has held that the HDPE tapes/strips are classifiable under sub-heading 3920.32 and HDPE sacks under sub-heading 3923 / 90 of the Tariff. Against said decision of the High Court, a SLP has been filed in the Supreme Court. 3. Lack of uniform classification of the goods has brought in disparity in the pricing of the commodity by the manufacturers of such goods with consequent impact on sales and the market economy. It has also been urged that decisions of High Courts relating to an all India statute are binding on Assessing officers even if they are located outside the jurisdiction of the concerned High Court. Keeping in view the settled principle of law and pending a final decision by Hon'ble Supreme Court against the said decision of Madhya Pradesh High Court in the case of M/s. Raj Packwell Ltd. v. Union of India as referred to supra, it would be expedient in the interest of administration of a taxing statute to bring out uniformity in the assessment practice. 4. Now, therefore, in exercise of the powers conferred under Section 37-B of the Central Excises and Salt Act, 1944 (1 of 1944) (henceforth referred to as the Act) and for the purpose of ensuring uniformity in the classification of the said goods, the Central Board of Excise and Customs hereby orders that HDPE strips and tapes of a width not exceeding 5mm shall be henceforth classified under sub-heading 3920.32 and sacks made therefrom under sub-heading 3923.90 of the Tariff. 5. The Board further directs that copy of this order be sent to all Collectors who shall issue appropriate trade notice for intimation of the trade and inform all other Assessing officers employed in execution of the provisions of the Act as assigned by the Board.