Tariff classification of insulated aluminium cables must follow exact measurement; rounding off cannot override the statutory limit.

Insulated aluminium cables with a sectional area of 2.545 sq. mm. were treated as exceeding the 2.5 sq. mm. limit in Item 33B of the First Schedule to the Central Excises and Salt Act, 1944. In construing the tariff entry, the court held that the statutory line of demarcation had to be applied as written and that no rounding off was warranted for fiscal classification. The fractional excess therefore could not be ignored, and the cable fell within the lower tariff entry, attracting duty at 5% rather than 15%.

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Issues: Whether insulated aluminium cables with a sectional area of 2.545 sq. mm. are to be treated as exceeding 2.5 sq. mm. for the purpose of Item 33B of the First Schedule to the Central Excises and Salt Act, 1944, so as to attract duty at 5% instead of 15% by applying rounding off.

Analysis: The tariff entry fixed a clear line of demarcation: cables with core area not exceeding 2.5 sq. mm. attracted the higher rate, while cables exceeding that limit attracted the lower rate. In applying a fiscal entry of this kind, no arithmetical norm of rounding off was warranted. A measurement of 2.545 sq. mm. is, on its face, in excess of 2.5 sq. mm., and the statutory language had to be applied as written. The authorities therefore erred in treating the figure as 2.5 sq. mm. by ignoring the fractional excess.

Conclusion: The cable fell within the lower tariff entry, and duty was chargeable only at 5%.

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