- (1.) Question requiring determination in these appeals is - whether 'cigarette packets' would be 'other packing containers' or 'boxes' within the meaning of Tariff Item No. 17 of Central Excise Tariff Act (hereinafter referred to as 'the Act') It is the contention of the Department that cigarette packet is a 'small paper box' and cannot be termed as a 'container' which is relatively a large enclosure. On behalf of the respondent-ITC Limited, which manufactures cigarettes, it is submitted that cigarette packet would be 'other packing container' and not 'paper box'.
(2.) The aforesaid question is required to be decided by considering the relevant part of Tariff Item No. 17 and Exemption Notification No. 66/82-C.E., dated 28-2-1982. Tariff Item No. 17 reads as under :- Item No. 17-PAPER AND PAPER BOARD AND ARTICLES THEREOF Item No. Tariff Description Rate of Duty 17 Paper and Paper Board, all sorts (including paste-board, millboard, strawboard, cardboard and corrugated board), and articles thereof specified below, in or in relation to the manufacture ofwhich any process is ordinarily carried on with the aid of power (1), (2), (3) ............ (4) Boxes, cartons, bags and other packing con-tainers (including flattened or foldedboxes and flattened or folded cartons), whether or not printed and whether in assembled or unassembled condition. Thirty-two and a half per cent ad valorem.
(3.) The Exemption Notification dated 28-2-1982 reads thus :- "In exercise of the powers conferred by sub-rule (1) of Rule 8 of the Central Excise Rules, 1944, the Central Government hereby exempts articles of paper or paper board, falling under sub-item (4) of Item No. 17 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), from the whole of the duty of excise leviable thereon : Provided that no such exemption shall apply to printed boxes and printed cartons (including flattened or folded printed boxes and flattened or folded printed cartons) whether in assembled or unassembled condition.";