Tariff classification must follow the specific heading, not a residuary entry, where Chapter 83 coverage applies.

Classification under Heading 7308.90 was treated as residuary in character, and Note 2 to Section XV was applied to exclude goods falling within Chapter 83 from Chapters 72 to 76 and 78 to 81. The text further states that the condition limiting Heading 8312 to containers ordinarily intended for packaging goods for sale applied only up to sub-heading 8312.19, not to 8312.90. On that basis, the lower authorities were said to have misread the tariff structure, and the availability of a specific heading was held to bar resort to a residuary entry. Classification was therefore resolved in favour of the Revenue.

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Issues: Whether the goods manufactured by the assessee were classifiable under sub-heading 7308.90 as claimed, or under sub-heading 8312.90, and whether the residuary entry could be invoked when a specific heading was available.

Analysis: The entry under 7308.90 was treated as residuary in character. Note 2 to Section XV was applied to the dispute, requiring exclusion of goods falling under Chapter 83 from the scope of Chapters 72 to 76 and 78 to 81. It was further held that the condition limiting Heading 8312 to containers ordinarily intended for packaging of goods for sale applied only up to sub-heading 8312.19, and not to sub-heading 8312.90. The classification adopted by the lower authorities was found to rest on an erroneous interpretation of the tariff structure, and the availability of a specific heading was held to exclude resort to a residuary one.

Conclusion: The goods were not liable to be classified under the residuary heading as adopted below, and the classification issue was decided in favour of the Revenue.

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