Containers - Composite paper containers supplied for use as Defence Ammunition Stores - Classifiable under sub-heading 4819.19 prior to 1-3-1988 and under sub-heading 4819.90 after 1-3-1988 - Central Excise - 18/90-CX.4

Containers - Composite paper containers supplied for use as Defence Ammunition Stores - Classifiable under sub-heading 4819.19 prior to 1-3-1988 and under sub-heading 4819.90 after 1-3-1988 Circular No. 18/90-CX.4 Dated 9-7-1990 [From F.No. 61/19/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Classification of composite paper containers supplied for use as Defence Ammunition Stores whether under sub-heading 4819.19 or 4819.90. Doubts have been raised regarding the correct classification of composite paper containers supplied for use for Defence Ammunition Stores, whether under sub-heading 4819.19 or 4819.90 of Central Excise Tariff Act, 1985. 2. These containers are manufactured from laminated kraft paper which are spirally wound, cut and assembled. In some containers, there are metal/plastic components fitted. End caps prepared out of CR sheets are fitted with both ends. The tubes are then coated with ammunition protective composition. The specifications are strictly in conformity with those specified by the Defence Department. These paper containers are also subjected to various tests, such as, load-bearing test, water immersion test for 24 hours and moisture content test. 3. The matter has been discussed in the 2nd South Zone Tariff Conference of Collectors of Central Excise held at Bangalore on 24th and 25th May, 1990. The Conference observed that the view, taken by CETA, that as in HSN, containers of the rigid and durable type which are generally of better finish should be distinguished from other ordinary containers for packing, so as to exclude the former from the scope of sub-heading 4818.19 and classify it under sub-heading 4818.90, attracting duty of 12% ad valorem, is not correct. Heading 48.18 of the Central Excise Tariff Act, 1985 even after 1-3-1988 is not identical to Heading 4819 of HSN. In Central Excise Tariff Act, 1985, the first sub-division is between cartons, boxes, containers and cases on the one hand and other articles of paper, pulp, paper board, cellulose wedding or webs of cellulose fibres on the other hand. Therefore, even rigid and durable containers with better finish would be covered by the residuary entry 4818.19 and not under the sub-heading 4818.90. 4. Accordingly, the Conference was of the view that such composite paper containers would be classifiable under sub-heading 4818.19 of Central Excise Tariff Act, 1985. 5. The Board has accepted the recommendations of the Conference and accordingly, it is clarified that composite paper containers supplied for use as Defence Ammunition Stores will merit classification under sub-heading 4818.19 prior to 1-3-1988 and under sub-heading 4819.19 after 1-3-1988. 6. All the pending assessments should be finalised accordingly. 7. Field formations and Trade may be informed suitably.