Trade parlance and essential character support classifying pierced glass chatons as glass beads for exemption relief.

Glass sew-on-stones and glass chatons pierced with two holes were treated as glass beads for tariff classification because the essential character of the article was not changed by the holes. The analysis applied trade parlance and the prior binding view on the same item, concluding that piercing alone was not a valid basis to deny bead classification. On that footing, the articles were considered eligible for the claimed exemption and related duty relief, and the contrary classification and denial of benefit were set aside.

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Issues: Whether glass sew-on-stones or glass chatons pierced with two holes are classifiable as glass beads and, on that basis, entitled to the exemption and duty benefits claimed.

Analysis: The goods were examined in light of the earlier binding decision on the same item. It was accepted that the essential character of the article was not altered by the presence of holes for sewing or threading, and that piercing was not decisive for denying bead classification. The reasoning applied the trade parlance understanding of the goods and followed the prior view that such articles are treated as glass beads for tariff and exemption purposes.

Conclusion: The goods were held to be glass beads and the assessee was entitled to the claimed exemption and related duty relief.

Final Conclusion: The impugned classification and denial of benefit were set aside, and the appeal succeeded with consequential relief.

Ratio Decidendi: For classification purposes, glass chatons or sew-on-stones pierced with holes remain glass beads where trade understanding and the essential character of the article support that treatment, and such articles cannot be denied exemption merely because they are pierced.

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