Scope of term 'Utensils' under Notification No. 244/77, dated 15-7-1977 and now under Notification 180/88, dated 13-5-1988 - Clarification regarding - Central Excise - 14/90-CX.4

Scope of term 'Utensils' under Notification No. 244/77, dated 15-7-1977 and now under Notification 180/88, dated 13-5-1988 - Clarification regarding Circular No. 14/90-CX.4 Dated 6-6-1990 [From F.No. 141/2/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Scope of term 'Utensils' under Notification No. 244/77, dated 15-7-1977 and now under Notification 180/88, dated 13-5-1988 - Clarification regarding. Doubts have been raised regarding the correct interpretation and scope of the term 'Utensils' as mentioned in Notification No. 244/77, dated 15-7-1977 and now in Notification No. 180/88 dated 13-5-1988 and particularly whether certain aluminium containers like welded trays, wire tiffins, tub, bucket, pappad dabbas, garma dabbas, dhokia dabbas, dubba ubha and dabba baitha, etc., used for storing or serving of food drinks, etc., are to be considered as aluminium utensils so as to be exempt under the above mentioned Notification or not. 2. CEGAT in case of CCE v. M/s. Sandeep Metal Industries, 1989 (42) E.L.T. 142, has held that goods like welded trays, wiretiffins, tubs, buckets, pappad dabbas, garma dabbas, dokhla dabbas, dubba ubha and dabba baitha would not be utensils within the meaning of Notification 244/77-C.E. The Tribunal has referred to the Shorter Oxford English Dictionary, which describes 'Utensil' as, "receptacle for a liquid or other substances, often one of circular section and made of some durable material; especially utensils of this nature in domestic use, employed in connection with preparation or serving food or drinks and usually of size suitable for carrying by hand". and has subsequently held that it is not possible to conceive of utensils as not being associated with kitchen, principally as a vessel in which cooking is done. The goods described above are largely containers or holders to hold items of food, etc., for the purpose of carrying them from house to school or office and so on. 3. CEGAT further stated that the tray is neither utensil nor a vessel. It does not contain items and substances of food and drink - and it may serve as platform in which utensils containing food and drink are carried, such as when the food is to be served. A tray is never a vessel, but, much less a utensil. Even pappad daba, garma dabba and other dabbas are just boxes or cases of receptacles for holding pappad or other food items including food substances, etc., for temporary storage and are not 'Utensils'. As regards tub and buckets, they are even less utensils than of dabbas. The Board has accepted the above decision of the Tribunal and accordingly, goods like welded trays, wire tiffin, tub, bucket, pappad dabbas, garma dabbas, dokhla dabbas, dabba ubha and dabba baitha, etc., of aluminium are not aluminium utensils and now under Notification No. 244/87-C.E., dated 15-7-1977 and now under Notification No. 180/88-C.E., dated 13-5-1988. Consequently these would not be exempt from duty. 5. Board has also decided that this definition of utensils will hold good even for stainless steel utensils. 6. Field formations and trade be suitably informed. 7. Pending cases may be finalised on the above lines.