LexG. CLARIDGE AND COMPANY LIMITED versus COLLECTOR OF CENTRAL EXCISE, PUNE
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G. CLARIDGE AND COMPANY LIMITED v .. COLLECTOR OF CENTRAL EXCISE, PUNE FEBRUARY 12, 1991 A [K. JAGANNATHA SHETTY AND S.C. AGRAWAL, JJ.] B Central Excises and Salt Act, 1944/Central Excise Rules, 1944/ -y , Central Excise Tariff Act, 1985: First Schedule, Item No. 17 & Notifi- , cation dated 28.2.1982/Rule 8(1)/Chapter 48, Heading 48.18: 'Egg trays'-Whether regarded as 'containers'. Statutory Interpretation: Two or more words-.Coupled together · C -Susceptible of analogous meaning-Interpretation of. . Words and Phrases: 'Containers'-Meaning of. The appellant was a manufacturer of egg trays and other similar items. Before the introduction of Central Excise Tariff Act, 1985 (new 1 Tariff) effective from 1.3.1986, Central Excise and Salt Act, 1944 (old Tariff) was applicable to the relevant products. The appellant, classify- ing its product under Item 68 of the old Tariff, was paying duty accord- ingly. By Notification dated February 28, 1982, issued under Rule 8(1) ' ~_...._, of the Central Excise Rules, 1944, the Central Government exempted ·articles of paper and paper-board falling under Item 17(4) of the old Tariff. The appellant f°Iled a revised classification list for its products seeking classification under Item 17(4). The Asstt. Collector, Central 1 Excise held the products classifiable as 'articles of pulp' under Item 68 of the old Tariff, and the appellant was required to pay excise duty accordingly. ~--,.--.,, On. appeal, the Collector (Appe~ls) reversed the· order of the _., . Asstt. Collector, and held that the products were made out of waste paper and were classifiable under Item 17(4) as 'articles of paper and paper-board'. The Revenue filed appeals before the Customs, Excise and Gold (Control) Appellate Tribunal. On introduction of the new Tariff, the appellant classified the relevant products as 'containers' under sub-heading 4818.19 and claimed exemption. The Asstt. Collector held that the products were not 'containers' but were 'articles of pulp' falling under sub-heading · 4819.90 and.accordingly chargeable to duty. Setting aside the order in 317 D E F I G H A B c D E F G H 318 SUPREME COURT REPORTS [1991) 1 S.C.R. appeal, the Collector held that the products were 'packing containers' r~ -:-- and classifiable under sub-heading 4818.19. · \. The Revenue appealed before the Appellate Tribunal, which allowed all the appeals by a common judgment, but remanded the matter to the Collector (Appeals) with regard to the recovery for a certain period.· In the assessee's appeal to this Court it was contended that the ~ - 'egg trays' manufactured by the appellant were 'containers' under Item 17 and Heading 48.18 of the respective Tariffs; that merely because the egg tray was described as a tray does not mean that it was not a con- f tainer; and that it was not required that a container should be closed from all sides. On the question whether: egg trays and other similar products manufactured by the appellant are 'containers' falling under Item No. >-- 17 ( 4) or 17(3) of the First Schedule to the Central Excises and Salt Act, 1944 and Heading 48.18 of the Central Excise Tariff Act, 1985. Dismissing the appeals, this Court, HELD: 1.1 'Egg trays' being receptacles which are not covered or enclosed cannot be used for transportation of articles and cannot be regarded as 'containers' under Item 17 of the First Schedule to Central Excise and Salt Act, 1944 and Heading 48.18 of the Schedule to Central Excise Tariff Act, 1985. (326B] 1.2 Moulded pulp egg trays containing the eggs are put in a standard case for the purpose of transport. The case in which the egg trays are put, are 'containers' and not the 'egg trays' itself. [326E-F] 1.3 The expression 'container' is used in three different senses: in a broad sense, it means a receptacle which contains; in a narrower sense, it means a receptacle in which articles are covered or enclosed and transported; and in a more limited sense, it means enclosures used in shipping or railway for transport of goods. If used in a broad sense, 'container' would include a tray because it is a receptacle which con· tains articles and, therefore, an egg tray would be a 'container'. But an egg tray would not be a 'container' in a narrower sense because articles placed in it are not covered or enclosed and they cannot be transported as such. [3250-F) CLARIDGE & CO. v. COLLECTOR 319 1.4 In item 17 of
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