Tariff classification of printed hosiery folders: not "containers" under Chapter 48.18, supporting waiver of pre-deposit and stay.

Printed cartons or folders used for packing hosiery items were treated as not falling, at first sight, within the tariff entry for "containers" under Chapter Heading 48.18 of the Central Excise Tariff Act, 1985, because that expression was construed to cover enclosed receptacles such as boxes, cartons, and storage or transport containers. As the goods were not enclosed receptacles, the applicants established a strong prima facie case in the classification dispute. On that basis, waiver of pre-deposit of duty and penalty was granted and recovery was stayed pending the appeals.

---

---

Issues: Whether the applicants had made out a prima facie case for waiver of pre-deposit and stay of recovery in a classification dispute concerning printed cartons or folders used for packing hosiery items.

Analysis: The disputed goods were folders used for packing hosiery items and were not covered or enclosed. The applicable tariff entry for "containers" under Chapter Heading 48.18 of the Central Excise Tariff Act, 1985 was construed to mean packing containers analogous to boxes and cartons, and receptacles used for storage and transportation. Since the goods in question were not enclosed receptacles, they did not, at first sight, answer the description of containers under that heading. On that basis, the applicants established a strong prima facie case.

Conclusion: The applicants were entitled to waiver of pre-deposit of duty and penalty, and recovery was stayed pending the appeals.

---