Aluminium foil backed goods classification upheld under Tariff Heading 7607.60; finished laminated pouches were not excluded by Chapter Note.

Aluminium foil laminated paper bags and pouches, whether printed or unprinted, were treated as classifiable under Tariff Heading 7607.60 as aluminium foil backed goods rather than under Sub-heading 7616.90. The classification dispute turned on the scope of Tariff Sub-heading 7607 and Chapter Note (d) to Chapter 76 of the Central Excise Tariff Act, 1985, which was read as not excluding finished articles made from coated or backed aluminium foil unless the tariff scheme expressly required exclusion. The existing classification under Heading 7607.60 was therefore sustained, and the challenge to classification under 7616.90 failed.

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Issues: Whether aluminium foil based laminated paper bags/pouches, printed or unprinted, were correctly classified under Tariff Heading 7607.60 as aluminium foil backed goods, or were classifiable under Tariff Sub-heading 7616.90.

Analysis: The dispute turned on the scope of Tariff Sub-heading 7607 and Chapter Note (d) of Chapter 76 of the Central Excise Tariff Act, 1985. Tariff Sub-heading 7607 was found to specifically cover aluminium foils that are coated, backed, embossed and similar articles. Chapter Note (d) of Chapter 76 did not justify excluding products manufactured from such foils merely because they were finished articles. The goods were therefore treated as falling within the existing classification adopted in the impugned order.

Conclusion: The classification under Tariff Heading 7607.60 was upheld and the challenge to classification under Sub-heading 7616.90 failed.

Final Conclusion: The appeal challenging the excise classification was dismissed and the departmental view on classification was sustained.

Ratio Decidendi: Where a tariff entry specifically covers coated or backed aluminium foil products, finished goods manufactured from such foil are not excluded unless the tariff scheme or chapter notes expressly require exclusion.

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