Order No. A-1350/CAL/2000, dated 7-4-2000 in Appeal No. ER-300/99

Advocated By :   Shri J.M. Kennedy, JDR, for the Appellant.

Shri A.D. Ray, Advocate, for the Respondent.

[Order per : Archana Wadhwa, Member (J)]. - The short point involved in the present appeal of the Revenue is the correct classification of the respondents’ product 'multiwall paper sacks’. Prior to the period involved in the present appeal, the respondents were classifying the said sacks under sub-heading No. 4819.90 of Central Excise Tariff Act, 1985. However, with the introduction of budget for the year 1996-97 the respondents filed a classification list claiming the classification of the product under Heading 4819.19. Show cause notice was issued to them proposing classification under Heading 4819.90, which was confirmed by the Asstt. Commissioner. Appeal against the above order of the Asstt. Commissioner filed by the appellant was allowed by Commissioner (Appeals). Hence the present appeal by the Revenue.

2. We have heard Shri J.M. Kennedy, ld. JDR, for the Revenue and Shri A.D. Ray, ld. Advocate for the respondents.

3. It is seen that prior to 1996 the word ‘bag’ was not included in the tariff. The said word was added to the heading description against one (‘-‘) of Heading 4819. The Commissioner (Appeals) going by the definition of bags/sack as appearing in various dictionaries and encyclopaedia has held that there is no difference between ‘bag’ and ‘sack’, which can be used synonimously. She has further held that sub-heading 4819.19 pertains to description of goods in the heading against the one ‘-‘, whereas sub-heading 4819.90 is further other items not covered under two (“- -“). As such she has held that multiwall paper sacks are correctly classifiable under Heading 4819.19.

4. The definition of sacks as reproduced in the Commissioner (Appeals)’s order from various dictionaries is as under :-

Webster Encyclopaedic Unabridged Dictionary - “a large bag of strong, coarsely woven material - any bag”.

20th Century Dictionary - “a large bag of coarse material”.

Shorter Oxford Dictionary - “a large bag oblong in shape and open in one end.”

Webster 7th New Collegiate Dictionary - “large bag of coarse strong material.”

From the above definitions we hold that the Commissioner (Appeals) has rightly contended that the meaning of sack is more near to bag than to container. She has rightly concluded that there is no difference between bag and sack.

5. We also find that as per interpretative rules where the description of an article or group of articles under a heading is preceded by single ‘-‘, the said article or group of articles shall be taken to be a sub-classification of the article or group of articles covered by the said heading and where the description of an article or group of articles is preceded by 2 ‘-‘, the said article or group of articles shall be taken to be a sub-classification of immediately preceding description of the article or group of articles which has single ‘-‘. With the amendment in the budget of 1996 bags figured against the first '-' entry. As such the same has been correctly classified under Heading 48.19.19 by the Commissioner (Appeals). We do not find any infirmity in the order of the Commissioner (Appeals) and reject the Revenue's appeal.

Equivalent 2001 (131) ELT 0150 (Tri. - Kolkata)

Equivalent 2000 (041) RLT 0326