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TMI Blog1985 (8) TMI 240X X X X Extracts X X X X X X X X Extracts X X X X ..... f paper and its bottoms and tops are made up of plywood reinforced with mild steel rings and clamps. Prior to budget 1982 this product was classified under Tariff Item 68. However, consequent upon the amendment of tariff description of Central Excise Tariff Item No. 17 as a result of the 1982 budget, the respondents filed classification list on 4th March, 1982 claiming that their product was classifiable under the new Tariff Item No. 17(4) and entitled to exemption under Notification No. 66/82, dated 28th February 1982. This classification was approved on 29th March, 1982. Later, on further consideration of the matter, the department felt that the goods would be classifiable not under Tariff Item No. 17(4) but under Tariff Item No. 68. Accordingly, the assessee was asked to file a revised classification list by the range Superintendent under his letter dated 14th April 1982. Two show cause notices were also issued one on 26th June, 1982 and the other on 12th July, 1982 demanding duty on the clearances of fibre drums affected since March, 1982 as per classification under Tariff Item 68. The Assistant Collector as a result of the adjudication proceedings confirmed the classification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged that the classification of this product should be considered on its merits independently of the various decisions cited by the appellants. Respondents have especially emphasised the importance of going by trade understanding and common parlance criteria in determining the correct classification of the product. It is maintained that fibre drums are commercially known as articles of paper. In fact, Range Superintendent had verified the classification list No. 1/82 earlier filed by them and approved of classification of the product as an article of paper under Item 17(4) of Central Excise Tariff. Prior to the 1982 changes in the Central Excise Tariff, the product in question was, in fact, classified under Tariff Item No. 68. The department approved change in classification under the revised Central Excise Tariff Item No. 17(4) after due satisfaction about the composition of the product and the wording of the revised Tariff Item 17. The classification list No. 1/82 was thereafter approved by the Assistant Collector. So far as the trade understanding as well as correct classification as per determination of local excise authorities is concerned, respondents have furnished copy of Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt of India in the case of M/s. J.K. Steel Ltd. v. Union of India and Others - 1978 (2) E.L.T. (J 355). 3. Decision of the High Court of Bombay in the case of M/s. Advani-Oerlikon Ltd. and Another v. Union of India and Others - 1981 (8) E.L.T. 432. 4. Decision of the Government of India (Revision Case) in the case of M/s. Navin Industries, Bhavnagar - 1981 (8) E.L.T. 958. 5. CEGAT decision in the case of M/s. Entremonde Polycoaters Pvt. Ltd., Nasik v. Collector of Central Excise, Pune - 1984 (16) E.L.T. 389. 11. We have carefully considered the submissions made by both sides and the facts and evidence on record. As the appellants have shown, this Bench has already taken a view as regards classification of a composite product claimed to be classifiable under Central Excise Tariff Item No. 17(4) in the case of M/s. Indian Textile Paper Tube Co. Ltd., Virudhunagar, Madras v. Collector of Central Excise, Madurai Order No. 307/84, dated 25th May 1984 [reported in 1984 (18) E.L.T. 35 (Tri). The view taken by this Bench has been upheld by the Supreme Court. It is true, as stated by the respondent, that in this matter as well as other cases cited by the appellants in their favour, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve metal components such as lids and bottoms etc. For our benefit here we can only reproduce the operative part of the findings in the Indian Textile Paper Tube Co. Ltd. case - In this case before us, the paper tubes are prepared first and then other material components like lids, and bottoms which are made of tin plates and black plates and printed aluminium foils are added to the paper tubes. Without these components, like lids and bottoms made out the tin plates and black plates and printed aluminium foils, these articles, i.e. Vim Containers and Defence Containers cannot come into existence and, therefore, paper/board is only one of the raw materials and the other material components like lids and bottoms and printed aluminium foils are the other important materials and, under these circumstances, it cannot be said that the paper/paper board gives the essential character of the product in question. Besides this, the principal essential character of an article for classifying the same under Customs Tariff has no application in Excise Tariff classification. In the Excise Tariff classification, the words mentioned in the tariff itself must be given their natural and popular mea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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