Stainless steel utensil classification upheld for embedded casserole bowl and hylo inner under the exemption notification.

Stainless steel articles retain exemption as utensils where their nature and ordinary use answer the common meaning of an utensil. The non-detachable bowl of a casserole was treated as similar to a detachable bowl and did not lose utensil character merely because it was embedded later. The inner of a hylo was also regarded as an utensil because it could store or keep liquids. Thin sheet-metal construction did not alter that classification. Both items were therefore held eligible for exemption under Notification No. 175/88-CE.

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Issues: Whether the non-detachable bowl of a casserole and the inner of a hylo were classifiable as stainless steel utensils entitled to exemption under Notification No. 175/88-CE dated 13-5-1988.

Analysis: Sl. No. 6 of the notification granted nil rate of duty to stainless steel utensils under heading 73.23. The non-detachable bowl was held to be similar to a detachable bowl and retained the character of an utensil notwithstanding its later embedding in the casserole. The inner of the hylo was found capable of storing or keeping liquids and therefore answered the ordinary meaning of an utensil. The fact that it was made of thin sheet metal did not alter its character as an utensil.

Conclusion: Both the non-detachable bowl of the casserole and the inner of the hylo were held eligible for exemption under Notification No. 175/88-CE, against the Revenue and in favour of the assessee.

Ratio Decidendi: An article retains its character as an utensil for exemption purposes if, by its nature and ordinary use, it answers the common meaning of an utensil, and subsequent embedding or thinness of material does not by itself destroy that character.

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