Marketability of cigarette packet components determines excisability and tariff classification for paper slides and slits

Paper slides/slits used for packing cigarettes were treated as identifiable, marketable goods capable of being bought and sold, even though manufactured for captive use and bearing brand-specific printing. The Tribunal considered that the items had a distinct identity, were used as parts of cigarette packets, and had already been reflected in the assessee's classification lists. It also noted that the presence of manufacturer or brand particulars did not by itself negate marketability, particularly where similar printed shells were being sourced from outside. On that basis, the goods were held excisable and classifiable under Central Excise Tariff sub-heading 4818.90.

---

---

Issues: Whether paper slides/slits manufactured for packing cigarettes are excisable goods and classifiable under Central Excise Tariff sub-heading 4818.90, or whether they are not goods liable to duty.

Analysis: The Tribunal followed its decision in the assessee's own case and examined the marketability of the paper slides/slits in the light of the Delhi High Court and Madras High Court judgments relied on by the assessee. It noted that the items had a specific identity, were admittedly used as parts of cigarette packets, and were already the subject of classification lists filed by the assessee. The fact that the slides carried brand and manufacturer particulars did not negative marketability, especially when similar printed shells were being purchased from outside and that factual position was not controverted. On that basis, the Tribunal held that the goods were marketable and therefore excisable.

Conclusion: The paper slides/slits manufactured by the respondents are excisable goods and fall for classification under Central Excise Tariff sub-heading 4818.90, in favour of the Revenue.

Ratio Decidendi: Goods intended for use as cigarette packet components are excisable if they are identifiable, marketable, and capable of being bought and sold in the market, even if manufactured for captive use and bearing brand-specific printing.

---