Page 75 - ELT_15th May 2020_VOL 372_Part 4th

Law

2020 (372) E.L.T. 465 (S.C.)
IN THE SUPREME COURT OF INDIA
Deepak Gupta and Aniruddha Bose, JJ.
COMMISSIONER OF CENTRAL EXCISE, DELHI-III
Versus
UNI PRODUCTS INDIA LTD.
Civil Appeal Nos. 302-303 of 2009, decided on 1-5-2020
1
Carpets - Car matting - Classification of - Stipulation in Chapter Note
to 57 of Central Excise Tariff that carpets and other floor coverings in which
textile materials serve as exposed surface of Article when in use - This feature
of car mats not rejected by Revenue Authorities - Finding of Tribunal that
though in common parlance impugned product may not be considered as car-
pets, in view of Chapter, Section Notes, Chapter Note 1 to Chapter 57 ibid, and
interpretative notes for Rule 3(a) of Rule of Interpretation in HSN, impugned
goods classifiable under Tariff Item 5703 90 90 ibid - No error in such reason-
ing - Chapter 87 ibid does not contain car mats as independent Tariff Entry -
All mechanical components covered under Chapter 87 - HSN Explanatory
Notes dealing with interpretation of rules specifically exclude “tufted textile
carpets, identifiable for use in motor cars” from Heading 8708 ibid and placed
them under Heading 5703 ibid - Third condition specified in Section XVII ibid
of Explanatory Notes in relation to “III-Parts and Accessories” not satisfied by
subject item - Just for sole reason that subject item are exclusively made for
cars and not for “home use” (in broad terms), goods cannot be transplanted to
residual entry against Heading 8708 ibid - Subject-goods come under Tariff
Item 5703 90 90 ibid - No necessity to import “common parlance” test or any
other similar device of construction for identifying position of these goods
against relevant tariff entries - Order of Tribunal affirmed. [paras 23, 24, 25, 26]
Interpretation of statute - Tools for interpretation - “Common parlance
test”, “marketability test”, “popular meaning test” are all tools for interpreta-
tion to arrive at decision on proper classification of a Tariff Entry - Such tests
required to be applied if a particular Tariff Entry capable of being classified in
more than one heads. [para 23]
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1 On appeal from 2008 (231) E.L.T. 453 (Tribunal).
EXCISE LAW TIMES  15th May 2020  75