Per: Gowri Shankar, Member: The issue for decision in these appeals is the classification of inner frames for cigarette packets manufactured by the appellant company. The department has classified these goods under sub heading 7116.90 of the Central Excise tariff, whereas the appellant claims that these are classifiable under heading 7607.30 of the tariff read with notification 180/88.

2. Shri Ravinder Narain, Advocate for the appellant, explained that the inner frames were manufactured out of aluminium foil which is backed with paperboard. This material is received in the form of rolls. Out of these the inner frame is cut to the required size and shape. Thereafter it is perforated on both sides at the required distance from the edge, so that it can be folded at the perforation. Shri Ravinder Narain demonstrated with the assistance of samples how the inner frame is pasted to the inner side of the cigarette packet so as to provide support for the hinged lid and also helps to keep the cigarettes in place. The advocate stated that the goods are therefore nothing more than aluminium foil backed with board which is perforated and cut to shape. Therefore they were classifiable at the