Case: Collector of Central Excise, Baroda Vs. Ojas Corporation

bags and other packing containers, mentioned in I tem No.17(4) must have been manufactured out of paper or paper board. But if just to strengthen the packing container, a small piece of ply wood or a steel ring is introduced, whether such packing containers shall be out of the purview of Item No. 17(4)? The Tribunal has referred to the details of the fibre drum by saying that the cylinderical portion of the fibre drum is made of paper and its bottom and top are of ply wood, reinforced with mild steel ring and clamp. The Tribunal has also mentioned in the impugned order that according to the appellant, in terms of the percentage content, paper constitutes 51.18% of the finished product, the plywood content is about 23.57% and rings and clamps about 19.1/2%. Even before this Court, there was no dispute, that the percentage of the paper content is 51.18% only and the remaining 48.82% consists of plywood, rings and clamps etc. In this background, can it be said that the fibre drum which is a container is made of "paper and paper board, -ill sorts (including paste-board, mill board, straw board, cardboard and corrugated board), -and articles thereof........for being covered by tariff Item No. 17. Tariff Item No. 17 read as a whole alongwith different sub-clauses makes it abundantly clear that to be included in the said tariff Item, the product must be of paper, paper board and all sorts. How a product can be covered by the said tariff Item No.17 including 17(4) if the paper or paper board constitutes only 51.18% and the rest 48.82% consists of plywood content, rings and clamps etc, ? 6. On behalf of the appellant, it was pointed out that internationally, composite paper board drums and containers even wh en they are fitted with reinforcing circular bands of other materials, other than paper, e.g. textile backings, wooden supports, string handles, metal or plastic corners , they are classified under heading 48.16 under Customs Co-operati on Nomenclature (CCCN - Brussels), which is equivalent to Tariff Item No. 17(4). 7. The Glossary of Terms relating to Paper and Flexible Packaging issued by Indian Standards Institution (IS: 7186 -1973) defines Fibre board Drum as "a shipping package with cylindrical sidewall composed of paper or board having disc ends of similar or different materials, such as steel, wood etc." Thus, in spite of plywood discs at the top and the bottom, the fibre drum is to be treated as a fibre boa rd drum, according to the Glossary of Terms relating to Paper and Flexible Packaging issued by the Indian Standards Institution. Whatever may be the classification by the customs Co-operation Nomenclature (CCCN - Brussels), but Tariff Item N o. 17, including 17(4) clearly specify that products covered by said Item No. 17 must be the product of paper, paper board and all sorts. 8. On behalf of the Revenue, reliance was placed on the judgment of this Court in the case of Geep Flas hlight Industries Ltd., v. Union of India, 1985 (2) ELT 3 (S.C.) where this Court had to consider Tariff Item No.15A(2) which read as under: "Articles made of plastics, all sons, in- cluding tubes, rods, sheets, foils, sticks, other rectangular or profile shape whether laminated or not, and whether rigid or flexible including lay flat tubings and polyinyl chlorides sheets...... In that connection, it was said: "The learned Counsel Contended that the plastic torch manufactured by the petitioner is nothing else but plastic tube made of plastic in which certain other devices are inserted so as to make it a torch but it nonetheless retains the character of a plastic tube. A mere reference to Tariff Item No. 15A(2) would show that the ar ticles therein described are plastic material in different shape and form and not articles made from such plastic material. There is a noticeable difference between plastic material in different shape and form such as tubes, rods, sheets etc. and articles made from such plastic material such as plastic torch. It would be doing violence to language if one were to include plastic torch in articles under Tariff Item No. 15A(2) on the ground that a plastic tube is used for manufacturing plastic torch. Articles such as tubes, rods, sheets, foils, sticks etc. of plastic material merely describe plastic material in different shape and form and each word used therein takes its colour from the word just preceding and just succeeding and the adjectival clause articles made of plastics. Articles made of plastic meaning article made wholly of commodity commercially known as plastics, and not articles made from plastics along with other materials. (emphasis supplied) 9. The Tribunal has placed reliance on the judgment in the case of M/s.Indian Textile Paper Tube Company Ltd. Madras v. Collector of Central Excise, Madurai 1984 (18) ELT 35, where it was said that Vim Containers and Defence Containers cannot be said to be articles of paper or paper board; they are composite containers made of paper, paper board and other metal components. The material components like lids and bottoms were made of tin plates and black plates and printed aluminium foils were added. Paper or paper board was one of the raw materials. It was classified under Item No.68 and not under Item No. 17(4), because it was held that they cannot be held to be articles of paper or paper board, in view of the lids and bottoms of such Vim Containers and Defence Containers having been made of tin plates and black plates with printed aluminium foils having been added. We are informed that a Special Leave Petition filed against the said judgment has been rejected by this Court. According to us, there is not much difference in the components of Fibre Drum from Vim Container and Defence Container. The Tribunal has rightly come to the conclusion that such fibre drums shall not be covered by Item No. 17(4) and they shall be covered by residuary Item No.68.

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

Explanation:
0[ds]On a plain reading, boxes, cartons, bags and other packing containers manufactured from paper or paper board shall be covered under Item No. 17 because paper, paper boa rd and all sorts including paste board, mill board, corrugated board and articles thereof have been specified in clauses 1 to 4 of Item No. 17. It need not be pointed out that boxes, cartons, bags and other packing containers, mentioned in I tem No.17(4) must have been manufactured out of paper or paperTribunal has referred to the details of the fibre drum by saying that the cylinderical portion of the fibre drum is made of paper and its bottom and top are of ply wood, reinforced with mild steel ring and clamp. The Tribunal has also mentioned in the impugned order that according to the appellant, in terms of the percentage content, paper constitutes 51.18% of the finished product, the plywood content is about 23.57% and rings and clamps about 19.1/2%. Even before this Court, there was no dispute, that the percentage of the paper content is 51.18% only and the remaining 48.82% consists of plywood, rings and clamps etc. In this background, can it be said that the fibre drum which is a container is made of "paper and paper board, -ill sorts (including paste-board, mill board, straw board, cardboard and corrugated board), -and articles thereof........for being covered by tariff Item No. 17. Tariff Item No. 17 read as a whole alongwith different sub-clauses makes it abundantly clear that to be included in the said tariff Item, the product must be of paper, paper board and all sorts.The Glossary of Terms relating to Paper and Flexible Packaging issued by Indian Standards Institution (IS: 7186 -1973) defines Fibre board Drum as "a shipping package with cylindrical sidewall composed of paper or board having disc ends of similar or different materials, such as steel, wood etc." Thus, in spite of plywood discs at the top and the bottom, the fibre drum is to be treated as a fibre boa rd drum, according to the Glossary of Terms relating to Paper and Flexible Packaging issued by the Indian Standards Institution. Whatever may be the classification by the customs Co-operation Nomenclature (CCCN - Brussels), but Tariff Item N o. 17, including 17(4) clearly specify that products covered by said Item No. 17 must be the product of paper, paper board and all sorts.The Tribunal has placed reliance on the judgment in the case of M/s.Indian Textile Paper Tube Company Ltd. Madras v. Collector of Central Excise, Madurai 1984 (18) ELT 35, where it was said that Vim Containers and Defence Containers cannot be said to be articles of paper or paper board; they are composite containers made of paper, paper board and other metal components. The material components like lids and bottoms were made of tin plates and black plates and printed aluminium foils were added. Paper or paper board was one of the raw materials. It was classified under Item No.68 and not under Item No. 17(4), because it was held that they cannot be held to be articles of paper or paper board, in view of the lids and bottoms of such Vim Containers and Defence Containers having been made of tin plates and black plates with printed aluminium foils having been added. We are informed that a Special Leave Petition filed against the said judgment has been rejected by this Court. According to us, there is not much difference in the components of Fibre Drum from Vim Container and Defence Container. The Tribunal has rightly come to the conclusion that such fibre drums shall not be covered by Item No. 17(4) and they shall be covered by residuary Item No.68.