TaxTMI 
TaxTMI 
2025 (11) TMI 1090
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.... Act, 1985 at their factory in Rabale MIDC industrial area. The appellants are registered taxpayer holding Central Excise Registration No. AAQCS1734AEM001 for manufacture of aforesaid finished products and for compliance with the central excise statute. 2.3 The appellants avail concessional central excise duty in respect of clearance of final products vide Serial No.171 of Notification No.12/2012- C.E. dated 17.03.2012 as amended. During the scrutiny of records maintained by the appellants, it was noticed by the Department that the concessional rate of Basic Excise Duty (BED) @ 6% availed by the appellants in respect of corrugated rolls/liners is incorrect, as these products are known in the industry as "fitments" and cannot be treated as part and parcel of corrugated boxes; these products are rightly classifiable under sub-heading 4819 1090 which attract BED @ 12%. Accordingly, the Department had issued Show Cause Notice (SCN) dated 15.04.2014 demanding differential duty payable on account of short payment of duty for the period April, 2012 to March, 2013 under Section 11A(4) of the Central Excise Act, 1944 along with interest and for imposition of penalty under Rule 25 of Cent....
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.... corrugated boxes and the duty demands were set aside. Thus, he submitted that impugned order upholding the demand of duty confirmed in the order-in-original is not legally sustainable. 4. Learned Authorised Representative (AR) appearing for the department, on the other hand, reiterated the findings made in the impugned order and submitted that the demands are sustainable in view of the facts mentioned therein. He further stated that the concessional rate of BED is subject to the condition that the exemption shall be applicable to units manufacturing cartons, boxes or cases, as the case may be, starting with the stage of Kraft paper, corrugated paper, corrugated sheet, corrugated board or any one or more of these stages and not having the facility to manufacture Kraft paper in the factory. Therefore, he submitted the notification is applicable only to cartons, boxes and cases not for fitments/parts of cartons/corrugated boxes. 5. Heard both sides and perused the records of the case. We have perused the additional written submissions in the form of paper books submitted by both sides. 6. The issue involved in this appeal is to examine whether the excisable goods under dispu....
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....20 20 --- Boxes 4819 20 90 --- Other 4819 30 00 - Sacks and bags, having a base of a width of 40cm or more 4819 40 00 - Other sacks and bags, including cones 4819 50 - Other packing containers, including record sleeves: 4819 50 10 --- Made of corrugated paper or paperboard 4819 50 90 --- Other 4819 60 00 - Box files, letter trays, storage boxes and similar articles, of a kind used in offices, shops or the like In this regard, we find that as per the legal provisions of the Central Excise Tariff Act of 1985, for legal purposes, the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes. We also find upon careful reading of the various tariff entries of heading 4819 as given above, the scope of goods covered under sub-heading 4819 10 relates to 'cartons, boxes and cases of corrugated paper or paperboard', whereas those covered under sub-heading 4819 50 relate to 'other packing containers, including record sleeves' and the tariff item 4819 5010 specifically cover such other packing containers made of corrugated paper or paperboard. The f....
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....ine. The same is cut to specific size and then given bends in a special machine to create creasing based on drawings supplied. Such entities duly cut to size and also shape and creased as per drawings no longer retain the characteristic of a sheet/roll of corrugated papers. After that they are stapled and stitched. This size and shape and folding on creasing and slotting results in a specific entity, which is to be used in the packing to be placed in the carton/box containers for the item it is specifically designed. These corrugated entities from sheets, specifically further worked, are not understood as corrugated sheets. There is no evidence to that effect. On the contrary, they attain a new commercial identity viz. inherent fitments to a carton/box, container. Further manufacture conducted on a sheet falling under 48.10 has taken place and the levy once again would be attracted on the resultant commercially new product. (iii) This new product would be most appropriately classified under heading for carton/box etc. i.e. 48.19, as claimed, by applying the Boards order No. 61/39/86-CX. 2, dated 2-4-1986, which reads as follows :- "A doubt has been raised as to wh....
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....of corrugated paper or paperboard whether in assembled or unassembled condition". Therefore, there is no reason to arrive at a finding that top/bottom/covers/ sleeves would not be covered by this exemption under Sr. No. 3, apply. (iii) Notification 18/95, dated 16-3-1995 under Sr. No. 23 exempts all products as per Sr. No. 3 of Notification 22/94 as amended by 101/94 and for same reasons would exempt top/bottom cover/sleeves. (iv) Board's order G/39/82-CX2, dated 2-9-1986 would also apply in this case and because of clarification and exemption to Notification cannot be decided. (c) The reliance of the appellant in the case of Winter Misra Diamond Tools Ltd. [1998 (83) E.L.T. 670] is well founded to entitle them to the exemption. (d) The benefit of full exemption to side panel/packing even if they are considered as sheets under Sr. No. 4 of Notification 27/94 for the period 4-5-1994 to 16-3-1995 and under Sr. No. 24 of Notification 18/95 would be available. (e) The show cause notice accepts that 'inherent fitments' had been shown in the declaration filed to be a product manufactured. There is no requirement in the declarations to be filed....