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“(A) what is excluded are the Textile carpets of Chapter 57 and not car
mattings. One can only safely infer of exclusion of car matting in the list,
provided, if it is established that “car mattings” are nothing but ordinary
textile carpets of Chapter 57. But as has been already discussed supra car
mattings are commercially known differently in the market than ordinary
textile carpets of Chapter 57. From the point of view of its manufacturing
process these are entirely different from ordinary carpets. My discussion
and logic given in para 18.7.1 clearly indicates that, the “car mattings” are
different products. Board’s Circular No. 117/28/95-CX, dated 17-4-1995
clearly states car mattings different product all together.
The observations advanced in the judgments of Hon’ble Tribunal in the
cases of Sterling India [2000 (115) E.L.T. 807 (Tri.)], Jyoti Carpet Industries
[2001 (132) E.L.T. 458 (Tri. - Delhi)], Swaraj Majda [1993 (68) E.L.T. 258 (Tri.)]
clearly indicates that “car mattings” are entirely different than ordinary tex-
tile carpets of Chapter 57 (All these judgments are discussed in latter paras)
B-1. The HSN Clarificatory Notes on Chapter 57 (page 783 of HSN Clarifica-
tory Notes Volume-II) states the following category of products are classifi-
able under Chapter 57 :
“The above products are classified in this chapter whether made-up
(i.e. made directly to size, hemmed, lined, fringed, assembled etc.)
in the form of carpet squares, beside rugs, hearth rugs, or in the
form of carpets for installation in rooms, corridors, passages or
stairs, in the lengths for cutting and making up. They may also be
impregnated (i.e. with latex) or packed with woven or non-woven
fabrics or with cellular rubber or plastics.”
B-2. From the above notes it is clear that not only the carpets in running
length, but also made ups (i.e. made directly to size, hemmed, lined,
fringed assembled etc.) in the form of carpet squares, or in the form of car-
pet installation in rooms, corridors, passages or stairs are required to be
classified under Chapter 57.
B-3. From the above explanation, it is seen that, carpets covered under
Chapter 57 are simple carpets in running length may be made up directly to
size, hemmed, lined, fringed, assembled etc. in the form of carpet squares,
or in the form of carpet installation in rooms, corridors, passages or stairs
and not certainly covers car mattings which undergo further processing like
moulding, chemical treatment to provide strength to the carpet fabric as per
customer requirement, lamination as per customers requirements, and
trimming for fixing in the vehicle with NamdA (sic) fixing on the back. The
car mattings although is of textile carpet origin are not ordinary carpets as
explained in the Explanatory Notes of HSN for Chapter 57 and certainly not
covered under Chapter 57.
When car mattings are not by definition covered under Chapter 57 (as ex-
plained above taking reference of the clarificatory notes of HSN) those are
not excluded from para-C of HSN General Explanatory Notes on Section
XVII referring to parts and accessories Part-III para (c) (Sl. No. 7) (page 1412
of HSN Explanatory Notes Vol. 4).
Thus “car mattings” satisfies the test 2-C.
18.7 From the above discussion it is clear that “car matting” satisfies all
the tests enumerated in the explanatory notes of HSN for Chapter XVII, to
be treated as a part and accessory classifiable under Chapter 87.08 of motor
vehicles of Chapter 87.05 - 87.07.”
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