Hyderabad Allwyn Ltd. Vs. Commissioner of C. Ex. - Court Judgment

Excerpt:

.....articles (other than forged or stamped but not further worked, or articles of iron or steel wire).4. the dispute is whether the ballot boxes manufactured by the appellant falls under heading 83.03 or 7326.90. if they attract heading 8303.00, the same being more specific would override sub-heading 7326.90.5. admittedly, the size of the ballot boxes in question is 470 mm x 330 mm x 280 mm. while the top part of the ballot box is of 1.6 mm cold rolled low carbon steel/mild steel, the sides and bottom are of 1 mm thickness. there is no case for the department, that ballot boxes are either armoured or reinforced. the assistant commissioner had taken a view in favour of the assessee in this case. the appellate authority took the view that ballot boxes would fall under the category of "cash or deed boxes and the like".6. it is contended on behalf of the appellant that cash boxes are not manufactured with steel sheets of 1 or 1.6 mm thickness and ballot boxes being manufactured out of such thin steel sheets cannot be regarded as cash boxes or the like. our attention has been drawn to the hsn explanatory notes under chapter heading no. 8303. the heading is identical to the heading.....

Judgment:

1. The manufacturer of Ballot Boxes being agreed by the classification of Ballot Boxes under Tariff Heading No. 83.03 and confirmation of demand on that basis by the Collector (Appeals), in reversal of the decision of the Assistant Collector, has filed the present Appeal against the decision of the Collector (Appeals).

2. The Chapter 83 of the Tariff deals with miscellaneous articles of Base metal. Heading 83.03 takes in the following : "Armoured or reinforced Safes, Strong-Boxes and Doors and Safe Deposit Lockers for Strong Rooms, Cash or deed boxes and the like of Base Metal".

3. Chapter 73 deals with the articles of Iron or Steel. Heading 7326 relates to other articles of Iron or Steel. Sub-heading 7326.90 deals with the other articles (other than forged or stamped but not further worked, or articles of Iron or Steel wire).

4. The dispute is whether the Ballot Boxes manufactured by the appellant falls under Heading 83.03 or 7326.90. If they attract Heading 8303.00, the same being more specific would override sub-heading 7326.90.

5. Admittedly, the size of the Ballot Boxes in question is 470 mm x 330 mm x 280 mm. While the top part of the Ballot Box is of 1.6 mm Cold rolled low carbon steel/mild steel, the sides and bottom are of 1 mm thickness. There is no case for the Department, that Ballot Boxes are either armoured or reinforced. The Assistant Commissioner had taken a view in favour of the assessee in this case. The Appellate authority took the view that Ballot Boxes would fall under the category of "Cash or Deed Boxes and the like".

6. It is contended on behalf of the Appellant that Cash Boxes are not manufactured with Steel Sheets of 1 or 1.6 mm thickness and Ballot Boxes being manufactured out of such thin steel sheets cannot be regarded as Cash Boxes or the like. Our attention has been drawn to the HSN Explanatory Notes under Chapter Heading No. 8303. The Heading is identical to the Heading under consideration. The Section note refers to Safes and Strong Boxes armoured or reinforced, fitted with secured locks or by doors and double walls and used in banks, offices, hotels, etc. The third para states thus : " The heading also includes metal cash or deed boxes (with or without internal compartments). These are portable boxes (incorporating a key-operated or a combination lock, sometimes with double walls which by virtue of their design, material etc., offer reasonable protection against theft and fire. Collecting-Boxes, Money-Boxes also fall under this Heading provided they have similar provisions for security. Otherwise, they are classified according to the constituent metal or alloys".

7. In order that Boxes should be classified under Heading 8303.00, it need not be a cash or deed box. A cash box or a deed box will fall under the Chapter 83.03. Boxes which can be compared to Cash Box or deed box would also attract the Heading 8303.00. Therefore, the fact that the goods in question are boxes for depositing ballot papers and not cash or deed would not matter. The question is whether ballot box is like a cash or deed box. The test appears to be whether a box has provision for security against theft and fire. In considering the question of the adequacy of the protection, various factors such as the nature of the sheet used, the thickness of the sheet, the nature of the locking device etc. may have to be looked into.

8. There is no dispute that Ballot Boxes are made of steel sheets of 1 mm and 1.6 mm thickness. It is also accepted that the Ballot Boxes have locking devices. The very purpose of using steel sheets of the type referred to and incorporating locking devices is to ensure protection against theft and/or fire. Having regard to these circumstances, we find no justification to differentiate between the Ballot Boxes in question and cash boxes and deed boxes covered by Heading No. 8303.00 and dealt within paragraph 3 of the HSN Notes referred to above. There is no genuine attempt to show that the Cash Boxes cannot be made of steel sheets of the type and size used in the instant case. Our attention has been drawn to the opinion of the Board reflected in the Hyderabad Collector's Trade Notice No. 163/90, dated 26-9-1990 seen at page T 24 of 1990 (50) E.L.T. taking the view that Ballot Boxes manufactured for the purpose of of 1989 elections attract Heading 8303.00. In our opinion, the instruction is correct.

We find no ground to interfere with the impugned order passed by the Collector (Appeals), Hyderabad and dismiss the appeal.