Classification of Card Cans/Silver Cans under Chapter 84 of Central Excise Tariff Act, 1985 or as articles of Plastic or Aluminium - Central Excise - 8/90-CX.4

Classification of Card Cans/Silver Cans under Chapter 84 of Central Excise Tariff Act, 1985 or as articles of Plastic or Aluminium Circular No. 8/90-CX.4 Dated 31-5-1990 [From F.No. 61/18/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Classification of Card Cans/Silver Cans under Chapter 84 of Central Excise Tariff Act, 1985 or as articles of Plastic or Aluminium. Doubts have been expressed as to the correct classification of Card Cans/Silver Cans used in the collection of Cards or Silver in Textile Mills under Heading 84.48, or as article of plastic or aluminium. 2. It has been reported that Card Cans/Silver Cans, which are of different sizes, are manufactured from plastic sheets or aluminium sheets. The plastic/aluminium sheets are cut to required size, and hole punched to make them into tubes. Both the hollow sides of the tube are rivetted i.e. the bottom with steel bottom plate and ring and top with top box metal and ring. 3. In the inner side it may contain a spring attached to steel bottom plate and above the spring is another steel plate. This device enables cotton silvers to be filled in or removed easily by the weight of silver without any entanglement. Casters may also be fired at the bottom to enable easy movement of the Can. It was viewed that the Cans could be classified under Heading 84.48 of the CETA' 1985 in the light of these products being exclusively used with cards of textile machinery for collecting silvers, note 2(n) to Chapter 39 which states that it does not include article of Section XVI i.e. machinery mechanical and electrical appliances, and HSN Explanatory notes at page 1251 wherein cylinders and drums for cards are shown as coolers by Heading 84.48. However classification under Heading 84.48 was objected to by CERA who pointed out that credit of duty paid on plastic sheets has been wrongly availed since the card cans are wholly exempt from duty as articles of plastics. 4. The matter has been examined. Card/Silver Cans are different from cylinders and drums which are parts fitted on the Comber machines having spikes or tips on cylinders or drums, which help in cleaning and sorting fibre of cotton and remove waste and seeds. 5. In page 1253 of HSN Explanatory Notes under Classification Clause (e) roving or silver cans are excluded from the purview of Heading No. 84.48 and they are classified according to their constituent materials. Accordingly, it is clarified that Card Cans/Silver Cans will not appropriately fall under Heading 84.48, but, will be classified according to the constituent material either as an article of plastic or aluminium. 6. Field formations may be informed accordingly.