Case: G. Claridge and Company Limited Vs. Collector of Central Excise Pune

and that the egg tray and other similar products manufactured by the appellant are containers because they are receptacles for holding, storing and transporting the things kept in them. It has been urged that a tray is a shallow lidless container and merely because an egg tray is described as a try does not mean that is not a container. It is contended that egg trays are so designed as to protect the eggs from breakage and that egg trays approved the best mode for storage and transport of eggs. The learned counsel has submitted that the Appellant Tribunal was in error in proceeding on the basis that egg tray and other similar products manufactured by the appellant cannot be regarded as containers because when a single egg tray is reversed or turned upside down or titled sideways vertically at 90 Degree angle, the contents would fall down. The submission of the learned counsel is that it is not required that a container should be closed from all sides and that a container can also be open 10. The expression container had been thus defined in the dictionaries and glossaries of packaging terms "Container : One that contains; a receptacle or flexible covering for shipment of goods." (Abstract from Websters New Collegiate Dictionary, 1975) "Container : that which contains that in which goods are enclosed for transport." (Abstract from Chambers 20th Century Dictionary) "Container : Any receptacle which holds, restrains or encloses any article or commodity or articles or commodities to be stored or transported." (Abstract from Indian Standard - Glossary of Terms : 1 S. 4261-1967) "Container : (1) In general, any receptacle or enclosure used in packaging and shipping. (2) Relatively large, reusable enclosures to be filled with smaller packages and discrete objects, to consolidate shipments and allow transport on railway flat cars, flatbed trailers, aircraft, in ships holds or as deckloads, etc. (See Cargo Transporter; Containerization). (3) Any receptacle for holding a product." * [Abstract from Glossary of packaging Terms (USA)] "Container : A large box for intermodal transport, containing many smaller boxes of different shapes and sizes as well as individual articles." [Abstract from Glossary of Packaging Terms (Australia)] 11. The above definitions would show that the expression container is used in three different senses : in a broad sense, it means a receptacle which contains; in a narrower sense, it means a receptacle in which articles are covered or enclosed and transported; and in a more limited sense, it means enclosures used in shipping or railway for transport of goods. If used in a broad sense, container would included a try because it is a receptacle which contains articles and, therefore, an egg tray would be a container. But an egg tray would not be a container in a narrower sense because articles place in it are not covered or enclosed and they cannot be transported a such. It is, therefore, necessary to ascertain whether the expression container in Item 17 of the old Tariff and Heading No. 48.18 of the new Tariff has been used in the broad sense to include all receptacles or in a narrower sense to mean those receptacles in which the articles are covered or enclosed and transported. For this purpose, the context in which the word container has been used in these entries has to be examined. In Item 17 of the old Tariff, the word containers is preceded by the words boxes, cartons, bags and other packing and in Heading No. 48.18 of the new Tariff, the word containers is preceded by the words cartons, boxes and is followed by the words and cases. It is a well accepted cannot of statutory construction that when two or more words which are susceptible of analogous meaning are couplet 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 , 240 : 1969 AIR(SC) 63 : 1969 (75) CrLJ 285 : 1969 (2) LLJ 116 )]. Considering the expression containers in the context in which it is used in the relevant tariff items, we are of the opinion that the said expression has to be constructed 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 abovementioned entries in the Excise Tariff 12. According to the New Encyclopedia Britannica (p. 444, Vol. 6, 1974 edn.) the practice followed in the various countries for the packaging of eggs for transport is as follows "Packaging : For retail use in the United States, eggs are repackaged in dozen and half-dozen paperboard cartons. In some other countries they are packed with straw or excelsior in long wooden boxes. In many parts of the world, they are marketed in baskets or boxes and the individual eggs are sold by weight. Several European countries stamp each egg with a date and number to meet the import restrictions of other nations." * The Glossary of Packaging Terms (USA) also shown that moulded pulp egg trays are put in a standard case which indicates that the egg trays containing the eggs are put in a case for the purpose of transport. In other words, the case in which the egg trays are put are containers and not the egg tray itself 13. For the reasons aforesaid, we are of the opinion that the Appellate Tribunal was right in taking the view that the egg trays and other similar products manufactured by the appellant cannot be regarded as containers under the relevant items of the Excise Tariff

Decision (1 = appeal accepted, 0 = rejected): 0

Explanation:
0[ds]g the expression containers in the context in which it is used in the relevant tariff items, we are of the opinion that the said expression has to be constructed 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 abovementioned entries in the ExciseFor the reasons aforesaid, we are of the opinion that the Appellate Tribunal was right in taking the view that the egg trays and other similar products manufactured by the appellant cannot be regarded as containers under the relevant items of the Excise Tariff