TaxTMI 
TaxTMI 
1988 (5) TMI 107
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....e Central Excises and Salt Act, 1944 and in the second appeal, viz., appeal No. E/2343/87-C, the classification is under First Schedule to the Central Excise Tariff Act, 1985. 2. In the first case, the Superintendent of Central Excise, Range-2,Phagwara, in his letter No. C. No, CE-20/CL/Mohan/80/547, dated 11-5-1982 addressed to M/s. Mohan Paper Mouldings (P) Ltd., intimated that their product egg trays could be correctly termed as packing containers and being unprinted were eligible for exemption under Notification No. 66/82-C.E., dated 28-2-1982. The Collector of Central Excise, Chandigarh reviewed the said order and after issuing necessary show cause notice and granting personal hearing to the appellants, in his order No. 2/Review/84,....
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.... decision being common in both the appeals, the same were heard together and are being disposed of by this common order. 5. Appearing for M/s. Mohah Paper Mouldings (P) Limited, Shri Lachman Dev, learned Advocate has argued that Notification No. 66/82-C.E., dated 28-2-1982 was issued simultaneously with the amendment of Tariff Item 17 of the Central Excise Tariff w.e.f. 1-3-1982. Except Printed Cartons/Boxes all other articles of paper were exempted by this Notification. He has stated that process of manufacturing of egg tray has been given in paragraph-2 of the appeal Memorandum filed by the assessee. Egg tray was manufactured from aqueous suspension and stock and not from pulp. Aqueous suspension was different from pulp. For definition....
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....nguish stock from pulp. For this purpose, he has drawn our attention to Pulp and Paper Science and Technology, Volume II Paper of Mac Graw-Hill Company edited by C. Earl Libby in which under Heading "pulp" it has been stated that "Pulp, or stock, or stuff, as it is sometimes called in the paper making industry, is the fibrous material prepared and ready for the stock preparation process; it is either unbleached or bleached, in the form of dried sheets or rolls, lap, in noodle form, or otherwise ready for commercial purposes". In the same paper, "Stock" has been described as "This is a term frequently used instead of pulp or stuff (as defined above). The term is usually restricted to material which has been diluted to the paper consistency a....
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....d on the decisions contained in (i) 1981 E.L.T. 653 (Gujarat), (ii) 1962 S.T.C. 611 (Bom.), (iii) 1987 (32) E.L.T. 541 (Rajasthan), (iv) 1985 (21) E.L.T. 633 (S.C.), (v) 1982 ECR 345-D =: 1980 E.L.T. 752 (Guj).), (vi) 1987 .(29) E.L.T. 321. In the judgment reported in 1981 E.L.T. 653 . (Guj.) = Jalon Plastic Industries And Others and 1987 (32) E.L.T. 541 (Rajasthan); Union of India v. Raish Plastic and Others, Hon'ble High Courts held that the expression 'articles made of plastic' referred to in Item 15A(2) read with sub-item (1) of Item 15A would mean articles for the manufacture of which plastic material has been used as a raw material and it does not suggest non-plastic raw material which has undergone polymerisation in course of manufac....
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....dominantly used therein. 8. Arguing for the Revenue, Shri Sunder Rajan has stated that according to I.S.I. specification I.S. 4261-1961, Paper is a sheet material essentially made of cellulosic fibre. In the present case, paper did not come into existence in the process of making egg trays. So, this egg tray is not an article of paper. It is also not a sheet material. Manufacturing process of this product is not also akin to manufacturing process of paper. As the paper did not come into existence, the question of egg tray being an article of paper does not arise. In the circumstances, egg tray is correctly classifiable under Item 68 of the Central Excise Tariff prior to 1-3-1986. so far as classification under New Tariff introduced w.e.f....
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....to the Central Excises and Salt Act, 1944. This is the classification held by the Collector in his Order-in-Review which has been challenged by M/s. Mohan Paper Mouldings (P) Ltd. we, therefore, do not find any infirmity in the Order-in-review. Consequently, we uphold the same 'and dismiss the appeal filed by M/s. Mohan Paper Mouldings (P) Ltd. 11. So far as the classification under First Schedule to the Central Excise Tariff Act, 1985 is concerned, we find that Heading No. 48.18 as it stood in March, 1986, reads as under :- "48.18: Other articles of paper pulp, paper, paper board, cellulose wadding or webs of cellulose fibers." Sub-heading 4818.19 is a residue sub-heading of "Cartons, boxes, containers and cases (includin....