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TMI Blog2003 (2) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that cigarette packet would be 'other packing container' and not 'paper box'. 2. The aforesaid question is required to be decided by considering the relevant part of Tariff Item No. 17 and Exemption Notification No. 66/82-C.E, dated 28-2-1982. Tariff Item No.17 reads as under : - Item No.17 -- PAPER AND PAPER BOARD AND ARTICLES THEREOF Item No. Tariff Description Rate of Duty 17. Paper and Paper Board, all sorts (including paste-board, millboard, strawboard, cardboard and corrugated board), and articles thereof specified below, in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power -- (1), (2), (3) …….. (4) Boxes, cartons, bags and other packing containers (including flattened or folded boxes and flattened or folded cartons), whether or not printed and whether in assembled or unassembled condition. Thirty two and a half per cent ad valorem, The Exemption Notification dated 28-2-1982 reads thus :- "In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts articles of paper or paper board, falling under sub-item (4) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ox for containing goods; 2. A container of waxed paper or plastic in which liquids, such as milk, are sold Container 1. An object used for or capable of holding, esp. for transport or storage, such as a carton, box etc. 2. a large cargo-carrying standard-sized container that can be loaded from one mode of a transport to another 3. a container port; 4. a container ship." 5. Further, meaning of the word 'container' used in Tariff Item 17 was considered by this Court in G. Claridge & Company Ltd. v. Collector of Central Excise [1991 (52) E.L.T. 341 (S.C.)]. In that case, question was - whether egg trays and other similar products manufactured by the appellant can be regarded as 'containers' under the relevant entries in the Central Excise Tariff. The Court considered the expression 'containers' defined in the dictionaries and glossaries of Packaging Terms : "Container : One that contains; a receptacle or flexible covering for shipment of goods." (Abstract from Webster's new Collegiate Dictionary, 1975) "Container : (i) that which contains (ii) that in which goods are enclosed for transport." (Abstract from Chamber's 20th Century Dictionary) "Container. - Any rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pled together they are understood to be used in their cognate sense. It is based on the principle that words take as it were their colour from each other, that is, the more general is restricted to a sense analogous to a less general. [See : Dr. Devendra M. Surti v. State of Gujarat [1969 (1) SCR 235 at p. 240]. Considering the expression 'containers' in the context in which it is used in the relevant tariff item, we are of the opinion that the said expression has to be construed to mean 'packing containers' which are analogous to boxes and cartons, that is, an enclosed receptacle which can be used for storage and transportation of articles. Egg trays being receptacles which are not covered or enclosed cannot be used for transportation of articles and, therefore, they cannot be regarded as 'containers' under the above mentioned entries in the Excise Tariff." 6. As stated above, the phrase 'other packing container' would not be a box, carton or bag and the same is used to cover packing articles which are not boxes, cartons or bags. Applying the test laid down in the aforesaid judgment, the said phrase is to be understood in context of previous words and on the basis of well ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , before they are brought into use: Provided that the Collector may by an order in writing and subject to such limitations and conditions as may be prescribed by him in the order relax the provisions of this sub-rule. (4) On each case or packet of matches shall be legibly marked in ink or oil colour a progressive number, commencing with No. l, for each year and in different series for each class of matches, the number of gross of boxes or booklets contained in each case or packet and the grade of Central Excise Stamps affixed thereto. (5) Every box or booklet of matches, other than matches of the type known as Bengal Lights, issued for home consumption, shall have on the box or booklet, or on the manufacturer's label affixed thereto, a statement in clearly discernible character, of the retail price at which the manufacturer intends that the box or booklet should be sold: Provided that the Collector may by an order in writing and subject to such limitations and conditions as may be prescribed by him in the order relax the provisions of this sub-rule. Rule 72. Examination by proper officer at the factor. -- If the proper officer is in doubt whether Central Excise Stamps hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or of a paper wrapper top completely closed on all sides and with all sides and with all outer edges gummed down." 10. As stated in the Rule, a cigarette packet may contain 5, 10, 25, 50 or more cigarettes. That cigarette packet would be packed into a wooden, tin or cardboard box opening only at the top. 11. The learned counsel also referred to the decision rendered by this Court in Collector of Central Excise v. Punjab Anand Lamps Industries [1989 (43) E.L.T. 816] and contended that it was required to be decided whether such packets were commercially known and marketable as packets, boxes or containers? He submitted that the dictionary meaning of the word ';box' is not required to be resorted to in the present case because cigarette packet is not commercially known in the market as 'box' or 'carton' and as such is not marketable as commodity. In that case, the Court considered whether bulb sleeves and tube sleeves manufactured by Punjab Anand Lamps and used for packing the electric bulbs and tubes were excisable items and whether they were printed boxes/printed cartons? In that context the Court observed thus : - "4. We have perused the order of the Tribunal. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision in Asia Tobacco Co. Ltd v. Union of India [1992 (58) E.L.T. 418 (Madras)] upon which heavy reliance has been placed by the learned counsel, itself would indicate that cigarette packets are marketable. In that case, what was marketed and purchased was outer shell of cigarette packet for keeping in cigarettes but it was held not to be a container. Similarly, in Zupiter Printery and another v. Union of India etc. [1991 (34) ECR 7 (Delhi)], petitioner was manufacturing cigarette 'outer shells' of printed sheets supplied to it by M/s Godfrey Philips India Ltd, a manufacturer of cigarettes. There are other matters revealing that such packets or parts thereof are manufactured as per the order and are sold. This leaves no doubt that such packets are manufactured and are marketable. 14. Further, for considering the meaning of the word 'box' or the 'container', we have referred to the interpretation of the word 'container' as given by this Court in G Clardige & Co's case (supra). In that case also, the Court has referred to the dictionary meaning of the word 'container'. In any case, for interpreting the meaning of the word used in tariff entries or taxing statute, the la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to give so much power as was necessary for carrying out the objects of the Act and not to give any unnecessary powers. In other words, the construction or the words is to be adapted to the fitness of the matter of the statute." 15. From the aforesaid discussion, it is clear that for interpreting tariff entries trade meaning as well as dictionary meaning is also required to be considered to reconcile and harmonise the tariff entry. In the present case, meaning of the word 'box' for the purpose of interpreting the tariff item would be -- a case or receptacle usually rectangular or cylindrical and with a lid of wooden, metal, card etc. Hence, the description of 'cigarette packet' would fit in the meaning of the word 'box' as it is a rectangular receptacle with a lid with a protective case or a covering for cigarettes. Further, the meaning of the word 'container' in context of the tariff item would be -- (1) that contains a receptacle or flexible covering for shipments or transport of goods; (2) it will be relatively large, reusable enclosure filled with smaller packages; and (3) it may contain number of boxes. But it should not be by itself box, carton or bag. Therefore, it woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd are not entitled to exemption as per the Notification. It is not in dispute that prior to the introduction of Tariff Item 17(4) by the Finance Bill of 1982, the outer shells and inner slides were classified under Tariff Item 68 and they were exempted from the whole of the duty. Even while considering the process of packing of cigarettes, it is seen that the packet is completed only after cigarettes have been put in it. Cigarettes are put first in the bundling paper and then placed in the slide. The slide along with the cigarettes is then inserted into the outer shell. The packet of cigarettes is thus completed at a stage when cigarettes are already in it. It is not in dispute that at this stage of assembly, it is not only the packet which is assembled but a packet of cigarettes containing cigarettes therein. Thus if this assembly is to be treated as manufacture, the manufacture is not of a packet but of a cigarettes packet containing cigarettes. Thus a cigarette packet cannot be subjected to duty twice over. Even otherwise it is submitted that the outer shells and inner slides cannot be subjected to any separate assessment. Whatever it may be, there is absolutely nothing to show ..... X X X X Extracts X X X X X X X X Extracts X X X X
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