Precious-metal watches with gemstones remain classifiable as watches under heading 9101, not as jewellery.

Wrist watches with cases wholly of precious metal, precious metal bracelets and gem setting were classifiable under heading 9101 because the tariff heading and Chapter Notes specifically covered watches of precious metal. Note 2 to Chapter 91 expressly included watches set with pearls or precious stones and fitted with precious metal bracelets, while Note 1(k) to Chapter 71 excluded articles falling under Chapter 91. The claim that their ornamental character made them jewellery was rejected, and Rule 3(b) was held inapplicable because classification was determined under Rule 1 by the specific heading and notes. The goods therefore fell under heading 9101, not heading 7101.

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Issues: Whether wrist watches made of precious metal, studded with precious stones and fitted with precious metal bracelets were classifiable under heading 9101 as watches of precious metal or under heading 7101 as articles of jewellery.

Analysis: Classification under the tariff had to be determined according to the heading terms and the relevant Chapter Notes. The goods were admitted to be watches with cases wholly of precious metal and with bracelets of precious metal, though studded with gems. Note 2 to Chapter 91 covered watches with cases wholly of precious metal or of metal clad with precious metal, including watches set with pearls or precious stones and fitted with precious metal bracelets. Note 1(k) to Chapter 71 excluded articles of Chapter 91. On that basis, the argument that the articles should be treated as jewellery because their ornamental value was predominant was rejected, and Rule 3(b) had no application because the goods were classifiable on the basis of Rule 1 itself.

Conclusion: The watches were correctly classifiable under heading 9101 and not as jewellery under heading 7101.

Final Conclusion: The appeal failed because the tariff description and chapter notes squarely placed the goods in the watch heading, leaving no scope for classification as jewellery.

Ratio Decidendi: Where the heading and Chapter Notes specifically cover watches of precious metal, even if gem-set and ornamented, classification must follow that specific entry and a general jewellery heading cannot be invoked.

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