COLLECTOR OF CENTRAL EXCISE, CHANDIGARH versus PUNJAB ANAND LAMP INDUSTRIES MOHALI (PUNJAB)

Citation: [1989] SUPP. 1 S.C.R. 123 · Decided: 14-09-1989 · Supreme Court of India · Bench: SABYASACHI MUKHERJI · Disposal: Dismissed

Judgment (excerpt)

COLLECTOR OF CENTRAL EXCISE, CHANDIGARH 
A 
v. 
PUNJAB ANAND LAMP INDUSTRIES MOHALi (PUNJAB) 
SEPTEMBER 14, 1989 
[SABYASACHI MUKHARJI AND B.C. RAY, JJ.] 
B 
Central Excises and Salt Act, 1944: Section 2(f), First Schedule 
Tariff Item No. 17(3), 17(4) and Notification No. 66/82 dated 28th 
February'82, Notification No. 151/83 dated 13th May'83-Applicabi-
lity of. 
Bulb sleeves and tube light sleeves for the purpose of packing c 
electric bulbs and electric tube lights-Whether 'printed boxes and 
cartons'-Levy of excise duty. 
I • 
The respondent was manufactnring printed both cartons and 
printed tube cartons for the purpose of packing electric bulbs and 
D 
electric tube light. The Additional Collector of Central Excise held that 
the cartons manufactured by the respondent were classifiable under 
item No. 17 of the Central Excise Tariff Act and thus chargeable to 
excise duty. Accordingly an order was passed for demand of excise 
duly. 
E 
The respondent filed an appeal before the Customs, Excise & 
Gold (Control) Appellate Tribunal. The Tribunal Bttowed the appeal 
by holding that (i) The product drums or sleeves manufactured by the 
respondent contd not be called 'box' or 'carton'; (ii) They were exemp-
led from excise duty under the relevant notification. 
F 
Hence this appeal by the Revenue. 
Dismissing the appeal, this Court, 
HELD: l. To consider the question whether the exemption notifi-
cation was applicable or not iit view of its terms, it is necessary to find 
G 
out whether these sleeves bulbs or sleeves or tube light sleeves 
manufactured for the purpose of packing the electric bulbs and tubes 
are printed box and cartons. [127E] 
.. 
2. The Tribunal approached the question from the literal mean-
ing as well as the functional use of the expressions employed. As these 
H 
123 
124 
SUPREME COURT REPORTS 
[1989] Supp. 1 S.C.R. 
A 
sleeves and tube sleeves manufactured by the respondent had no inde-
pe_ndent market as snch, and as these were utilised for captive consump-
tion for the end prodnct manufactured by the respondent, in the 
absence of any positive and reliable evidence that there was either a 
market for these goods manufactured by the respondent, and in that 
market these bulb sleeves and tube sleeves are known and marketable 
B 
c 
as corrugated boxes and cartons, a fact of which in the record, there is 
no positive evidence either way, the Tribunal proceeded on a correct 
basis. Therefore, the conclusion reached by the Tribunal cannot be 
assailed in this appeal. [I27F-i:I; 128B] 
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 3097 
of 1989. 
From the Judgment and Order dated 15.3.1989 of the Central 
Excise and Gold (Control) Appellate Tribunal, New Delhi in Order 
No. 100/89-C in Appeal No. E/55/87-C. 
D 
K. Swami and P. Parmeswaran for the Appellant. 
The Judgment of the Court was delivered by 
SABYASACHI MUKHARJI, J. This is an appeal under section 
35L(b) of the Central Excises & Salt Act, 1944 (hereinafter referred to 
E 
as 'the Act') against the order dated 15th March, 1989 of the Customs, 
Excise & Gold (Control) Appellate Tribunal, New Delhi (hereinafter 
referred to as 'the Tribunal'). 
The question for consideration in this appeal is, whether the bulb 
sleeves and tube light sleeves manufactured by the respondent for the 
F 
purpose of packing the electric bulbs and electric tube lights are 
'printed boxes and cartons' and are subject to excise duty or whether 
the respondent is entitled to exemption under notification No. 66/82 
dated 28th February, 1982, as amended by notification No. 151/83 
dated 13th May, 1983. The said amended notification reads as follows: 
0 
H 
"GSR No.-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 (3) 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: 
I 
I 
C.C.E . • v. PUNJAB.LAMP INDS. (MUKHARJI, J.] 
125 
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." 
The respondent was manufacturing printed bulb carton and 
printed tube carton falling under erstwhile Tariff Item No. 17(3) of the 
Central Excise Tariff. The revenue, it is alleged, ascerta

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