Tribunal classifies goods for Defense & Paramilitary forces under Tariff Heading 6307.9090, rejecting Revenue's argument. Common parlance key.

The Tribunal ruled in favor of the appellant, classifying the goods supplied to Defense and Paramilitary forces under Tariff Heading 6307.9090. It rejected the Revenue's argument for classification under Tariff Heading 4202.1990, citing the importance of common parlance and trade understanding in classification. The decision invalidated a previous decision that did not adhere to the common parlance theory. The judgment resolved the dispute, emphasizing the significance of legal precedents in determining the correct classification of goods.

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Issues: Classification of goods under Tariff Heading 6307.9090 vs. 4202.1990

Issue 1: Classification under Tariff Heading 6307.9090
The appellant argued that the synthetic web equipment supplied to Defence and Paramilitary forces, exclusively for their use, should be classified under Tariff Heading 6307.9090. The appellant demonstrated the goods before the Tribunal, emphasizing that they are not sold in the market. The observation was made that the goods are not commonly bought and sold, which is a primary test for classification. Reference was made to the principle that goods should be classified based on how they are understood in trade and common parlance, as established by the Apex Court. The Tribunal found that the goods presented by the appellant fell under the Tariff Heading 6307.9090, rejecting the Revenue's argument.

Issue 2: Contradiction with Tariff Heading 4202.1990
The Revenue contended that the goods should be classified under Tariff Heading 4202.1990, contradicting the appellant's classification. The Tribunal noted that there was no dispute regarding the nature of the goods as per the literature provided by the appellant, which are used by military and paramilitary personnel. However, the Revenue cited a previous decision involving a different company to support their classification under Tariff Heading 4202.1990. The Tribunal found that the previous decision did not consider the common parlance theory for classification, as mandated by the Apex Court, rendering it per incuriam and not a precedent on the subject. Consequently, the Tribunal upheld the classification of the goods under Tariff Heading 6307.9090, invalidating the previous adjudication.

Conclusion
The Tribunal allowed all three appeals, determining that the goods supplied by the appellant for Defense and Paramilitary forces should be classified under Tariff Heading 6307.9090. The decision emphasized the importance of considering common parlance and trade understanding in classifying goods, as established by legal precedents. The judgment clarified the correct classification of the goods, resolving the dispute between the parties involved.

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