Specific tariff heading prevails over residuary classification for aluminium foil backed with paperboard, with exemption benefit following.

Aluminium foil backed with paperboard and cut to shape remained classifiable under Heading 7607.30 because that heading expressly covers aluminium foil, whether or not backed with paperboard. The residuary Heading 7616.90 could not be used where the goods were already covered by a specific tariff entry. On that classification, the goods also qualified for the benefit of Notification No. 180/88. The appeals therefore succeeded in favour of the assessee on both tariff classification and exemption entitlement.

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Issues: (i) Whether inner frames for cigarette packets manufactured out of aluminium foil backed with paperboard and cut to shape were classifiable under Heading 7607.30 or under the residuary Heading 7616.90 of the Central Excise Tariff, 1991. (ii) Whether the goods were entitled to the benefit of Notification No. 180/88.

Issue (i): Whether inner frames for cigarette packets manufactured out of aluminium foil backed with paperboard and cut to shape were classifiable under Heading 7607.30 or under the residuary Heading 7616.90 of the Central Excise Tariff, 1991.

Analysis: Heading 7607 covers aluminium foil of a thickness not exceeding 0.2 mm, whether or not backed with paperboard or similar backing materials. The goods were found to be aluminium foil backed with paperboard and cut to shape, and there was no sufficient basis to treat them as an item outside the heading merely because of their colour or any alleged additional process. Heading 7616 is a residuary entry for other articles of aluminium and applies only when no other heading covers the goods.

Conclusion: The goods were classifiable under Heading 7607.30 and not under Heading 7616.90, in favour of the assessee.

Issue (ii): Whether the goods were entitled to the benefit of Notification No. 180/88.

Analysis: Once the goods were held to fall under Heading 7607.30, the notification benefit followed under the relevant entries considered by the Tribunal.

Conclusion: The goods were entitled to the benefit of Notification No. 180/88, in favour of the assessee.

Final Conclusion: The appeals succeeded because the disputed goods were held classifiable under the specific tariff entry for aluminium foil and were also held eligible for the notified exemption.

Ratio Decidendi: A residuary tariff entry cannot be invoked where the goods are covered by a specific heading, and aluminium foil backed with paperboard and cut to shape remains classifiable under the specific foil heading when the tariff so provides.

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