1996 (6) TMI 245

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.... that the issue arose in the context of the change in the description of the tariff item which earlier covered bags also under heading 4819.12 prior to 1-3-1988 as the description of the items was containers, cases, boxes and cartons. With the realigning of the tariff with the customs tariff paper bags also came to be specifically included within the tariff description of heading 4819. He pleaded that earlier the appellants goods viz. paper container were assessed under Tariff Heading No. 4819.12 and the department had accepted that position and the appellants had all along shown this under the category of containers in the classification filed by them and their classification had been accepted by the Department. He pleaded that subsequent ....

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....should be made prospectively; and (iii) In case the appellants are required to pay duty, Modvat Credit should be allowed to them. 3. In regard to the first plea, the learned Consultants drew our attention to the meaning of container as defined in various dictionaries as submitted by them on page 8 of the paper book. We observe that the definition of the term bag as set out in the Webster's New Collegiate Dictionary is as under : a flexible container that may be closed for holding, storing or carrying something .... We find from the definition, that bag can also be a container. Bag is a class apart and one end of this could be kept closed by pasting or by stitching. In the context of this the appellants product we obser....

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....observe that in the facts of this case, this plea is acceptable to the DR since the appellants goods were allowed clearance without payment of duty in terms of tariff heading 4819.12 read with Notification 59/88, dated 1-3-1988. In a situation like this where the appellants made clearance of the goods free of duty with the blessings of the department the appellants cannot be therefore found fault with. The appellants therefore should be restored to the position as on 1-3-1988 for the purpose of allowing their claim for Modvat benefit while demanding duty from that date. We therefore, hold that in such a situation, while demanding duty, benefit of Modvat should be given to them after they file the declaration in terms of Rule 57G, from the d....