N. P. Singh, J. - (1.) This is an appeal under Section 35L of the Central Excises and Salt Act, 1944 (hereinafter referred to as the Act).
(2.) The appellant has been manufacturing fibre drum, which consists of a circular tube exclusively made out of paper or paper-board. The lid and the bottom are made of plywood which is reinforced with mild steel rings and clamps. According to the appellant, in the total weight of the fibre drum, the predominant weight is of the paper or paper board. The same is the position in respect of value of the said fibre drum, the predominant value being of the paper or paper board. Commercially, it is known as a paper product.
(3.) The dispute is as to whether the fibre drum should be classified under Item No. 17(4) as claimed by the appellant or under the residuary Item No. 68, which is the stand of the Revenue. There is no dispute that prior to the Finance Act, 1982, it was classified under the residuary Item No. 68. But thereafter the appellant sought classification of the said fibre drum under Item No. 17(4) and exemption under Notification No. 66 of 1982. By an order dated 24-3-1982, the Assistant Collector of the Central Excise, approved the classification as sought by the appellant. The Trade Notice No. 49(MP) paper (2) 1982 dated 24-3-1982 (hereinafter referred to as the Trade Notice) in respect of Item No. 17(4) said :- "sub-item (4) covers packing, transport, storage, or sale of merchandise whether or not having a decorative value, bags, canes, packets, sacks, boxes, cartons, drums fitted with reinforcing circular bands of other materials, tubular containers for posting documents, garment bags, the like arc are also covered under this sub-item." The Assistant Collector of Central Excise, however, by an order dated 14-4-1982 called upon the appellant to file a revised classification list classifying fibre drum under Item 68, on the ground that as the fibre drum was not made exclusively out of paper, it was not eligible for classification under Item No. 17(4). In view of the letter aforesaid, the appellant filed revised classification list No. 3/82 classifying the fibre drum under Item No. 58 under protest. The appellant addressed a letter dated 29-6-1982 representing its case that fibre drum was classifiable under Item No. 17(4) and was not classifiable under Item No. 68. Ultimately by an order dated 20-10-1982, the Assistant Collector of Central Excise, held that Item No. 17(4) and Notification No. 66/82 were only applicable to such goods and articles which were made exclusively out of paper or paper board. Aggrieved by the said order an appeal was filed before the Collector of Central Excise (Appeals). The said appeal was allowed on the finding that fibre drum was classifiable under Item No. 17(4). The Collector of Central Excise (Appeals) referred to the composition of the fibre drum and the aforesaid Trade Notice in support of his finding.;