TaxTMI 
TaxTMI 
1991 (7) TMI 216
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....under Notification No. 140/86-C.E., dated 1-3-1986. 3. The Assistant Collector, Rajahmundry Division, issued a show cause notice dated 19-6-1986 calling upon the appellant to show cause as to why "reel core" should not be classified under T.I. 4818.90 attracting duty liability at 12% ad valorem. The appellant by their reply dated 26-8-1986 contended that "reel core" was manufactured out of sub-standard duty-paid kraft paper and it is consumed internally for winding up of the paper into reels, and the paper so wound up is also cleared on payment of duty. The appellants thus claimed classification of "reel core" under T.I. 4818.12 and that "reel core" having been manufactured out of paper falling under 48.04 and used as container for winding other varieties of paper by the appellant, the appropriate classification was under T.I.4818.12 and eligible for benefit of Notification No. 140/86-C.E., dated 1-3-1986. The appellants had relied upon the Explanation given to Section 4 of the Central Excises and Salt Act to justify their claim of reel core to be treated as packing container. However, both the authorities have rejected their contentions and held "reel core" to be classifiable und....
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.... may be. 4818.13 - Other printed cartons, boxes and cases. 4818.19 - Other 4818.20 - Toilet tissues, handkerchiefs and cleaning tissues of paper 4818.90 - Other." The General Explanatory Note (1) to the interpretation rule is also reproduced below: 1. "Where in column (3) of this Schedule, the description of an article or group of articles under a heading is preceded by " -", the said article or group of articles shall be taken to be a sub-classification of the article or group of articles covered by the said heading. Where, however, the description of an article or group of articles is preceded by"- -", the said article or group of articles shall be taken to be a sub-classification of the immediately preceding description of article or group of articles which has " -". 7. The contention of the appellant is that the "reel core" is a container and it serves the purpose of winding into reels the final product "paper" manufactured by them. The Hon'ble Supreme Court examined in great length the classification of "Egg trays", "Egg filler flats", "Egg cartons", "tube light packing trays", "apple trays" under the same Tariff Items 4818.90 in the light of the definition of "con....
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.... Dictionary) 'Containers - Any receptacle which holds, restrains or encloses any article or commodity or articles or commodities to be stored or transported' (Abstract from Indian Standard - Glossary of Terms : I.S. 4261 -1967) 'Container. (1) In general, any receptacle or enclosure used in packaging and shipping. (2) Relatively large, reusable enclosures to be filled with smaller packages and discrete objects, to consolidate shipments and allow transport on railway flat cars, flatbed trailers, aircraft, in ships' holds or as deckloads, etc. (See CARGO TRANSPORTER : CONTAINERIZATION). (3) Any receptacle for holding a product.' [Abstract from Glossary of Packaging Terms (USA)] 'Container. A large box for intermodal transport, containing many smaller boxes of different shapes and sizes as well as individual articles. [Abstract from Glossary of Packaging Terms (Australia).] 9. The above definitions would show that the expression 'container' is used in three different senses: in a broad sense, it means a receptacle which contains, in a narrower sense, it means a receptacle in which articles are covered or enclosed and transported; and in a more limited sense, it means enclosures ....
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....ng wooden boxes. In many parts of the world, they are marketed in baskets or boxes and the individual eggs are sold by weight. Several European countries stamp each egg with a date and number to meet the import restrictions of other nations.' [p. 444, Vol. 6,1974 Edition] The Glossary of Packaging Terms (USA) also shows that moulded pulp egg trays are put in a standard case which indicates that the egg trays containing the eggs are put in a case for the purpose of transport. In other words, the case in which the egg trays are put are 'containers' and not the 'egg tray' itself. 11. For the reasons aforesaid, we are of the opinion that the Appellate Tribunal was right in taking the view that the egg trays and other similar products manufactured by the appellant cannot be regarded as 'containers' under the relevant items of the Excise Tariff." 8. The item "reel core" is in the nature of a reel on which the paper is wound up. On a similar pattern like "wooden reel" or "Caps" on which threads and yarn are wound up. Now the question is as to whether it satisfies the test of a container. As can be the definition of the term container as noted in the ruling of the Hon'ble Supreme Court,....