Unit containers test for pickles in sachets failed, so denial of small scale industry exemption was unsustainable.

Pickles sold in sachets were not treated as goods sold in unit containers because the sachets did not contain a pre-determined uniform quantity. On that factual basis, the classification as unit containers failed, and the earlier view that mere packing for sale is insufficient was applied. As the goods were not cleared in unit containers, the basis for denying small scale industry exemption under Notification No. 16/1997 did not survive, making the denial of the SSI benefit unsustainable.

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Issues: Whether pickles sold in sachets, not containing a pre-determined uniform quantity, were liable to be treated as goods sold in unit containers and whether the goods were correctly classified under Heading 2103.90 for the purpose of denying small scale industry exemption.

Analysis: The sachets were admittedly not packed in a pre-determined uniform quantity. On that factual basis, they could not be treated as unit containers. The conclusion was supported by the Tribunal's earlier view that goods sold in such sachets do not answer the description of unit containers merely because they are packed for sale. Since the goods were not cleared in unit containers, the basis for denying the benefit of the SSI exemption under Notification No. 16/1997 did not survive.

Conclusion: The sachets were not unit containers, and the denial of SSI exemption was unsustainable.

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