Packing material classification for PP Rings supports SSI exemption under the cited circular and notification.

PP Rings used only to protect the threaded ends of pipes during handling and transportation were treated as packing material in their ordinary sense. On that basis, the text explains that the Board's circular on branded packing materials such as PP caps and similar items supported eligibility for small scale industry exemption under Notification No. 8/2003-C.E. where the branded-goods bar would not apply. The consequence stated is that the duty demand and its confirmation were unsustainable, and the assessee obtained consequential relief.

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Issues: Whether PP Rings used for protecting the ends of pipes during handling and transportation were packing material, and if so, whether the assessee was entitled to small scale industry exemption under Notification No. 8/2003-C.E. dated 01-03-2003 in the light of the Board's circular dated 27-11-1987.

Analysis: The PP Rings were used only to protect the threaded ends of pipes during handling and transportation. Packing, in its ordinary sense, includes material that covers or protects goods wholly or partly. On that basis, the PP Rings were treated as packing material. The Board's circular clarified that packing materials such as PP caps and similar items, when manufactured bearing the brand name or trade name of the goods to be packed, would not be hit by the bar against branded goods for SSI exemption.

Conclusion: The PP Rings were packing material and the assessee was entitled to SSI exemption. The duty demand and related confirmation in the impugned order were unsustainable, and the appeal succeeded with consequential relief.

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