Rubber seat cushions and scooter seats classification ruled by tariff headings, with reclassification effective only prospectively.

Cellular rubber goods cut to the shape and size of bus seats remained cushions/profile shapes and, not having been further worked into finished seats or parts thereof, were classifiable under Heading 40.08 rather than Heading 94.01. Scooter seats covered with rexin and known in the market as scooter seats were vehicle accessories falling under Heading 87.14 and were excluded from Heading 94.01. The reclassification based on the Board's tariff advice operated prospectively from the date of that advice, so duty demands for the earlier period could not be sustained.

---

---

Issues: (i) Whether cellular rubber goods cut to the shape and size of bus seats were classifiable under Heading 40.08 or Heading 94.01; (ii) Whether scooter seats were classifiable under Heading 87.14 or Heading 94.01; (iii) Whether the demands of duty were barred because the reclassification took effect only prospectively from the Board's tariff advice.

Issue (i): Whether cellular rubber goods cut to the shape and size of bus seats were classifiable under Heading 40.08 or Heading 94.01

Analysis: Heading 40.08, read with Chapter Note 9 of Chapter 40, covers plates, sheets, strips and blocks of vulcanised rubber, including articles cut to shape, so long as they are not further worked. Heading 94.01 applies to seats and parts thereof, but Chapter Note 1(a) of Chapter 94 excludes cushions of Chapter 40. The goods were cleared as cellular rubber profile shapes cut to size and were not covered with rexin or cloth, nor fitted with plywood or a frame so as to become a finished seat or a part of a seat. They retained the character of cushions rather than bus seats.

Conclusion: The goods were correctly classifiable under Heading 40.08 and not under Heading 94.01, in favour of the assessee.

Issue (ii): Whether scooter seats were classifiable under Heading 87.14 or Heading 94.01

Analysis: Chapter Note 1(h) of Chapter 94 excludes articles of Heading 87.14. Heading 87.14 covers parts and accessories of vehicles of Headings 87.11 to 87.13, and scooter seats are accessories of scooters falling within Heading 87.11. The goods were covered with rexin and were known in the market as scooter seats, bringing them within the vehicle accessory entry and outside Chapter 94.

Conclusion: Scooter seats were correctly classifiable under Heading 87.14 and not under Heading 94.01, against the assessee on classification.

Issue (iii): Whether the demands of duty were barred because the reclassification took effect only prospectively from the Board's tariff advice

Analysis: The earlier long-standing classification practice had continued until the Board's tariff advice dated 23-10-1990 changed the position. A change in classification practice, particularly one supported by tariff advice, was held to operate from the date of issuance and not retrospectively. On that basis, demands raised for the earlier period could not survive.

Conclusion: The duty demands based on the reclassification were time-barred to the extent they related to periods prior to the effective date of the Board's tariff advice, in favour of the assessee.

Final Conclusion: The classification of bus-seat cushions was upheld under Heading 40.08, the classification of scooter seats under Heading 87.14 was sustained, and the duty demands for the earlier period were set aside as not sustainable.

Ratio Decidendi: Rubber goods remaining as cushions or profile shapes and not yet converted into finished seats or parts thereof are classifiable under the rubber heading, while vehicle accessories covered by a specific exclusion cannot be brought under the furniture heading; a reclassification based on a new tariff direction operates prospectively from its issuance.

---