Sleeping bags fall under bedding classification, while excise duty must be recomputed on a cum-duty sale price basis.

Sleeping bags were held classifiable under Chapter heading 94.04 as articles of bedding, because the heading's ordinary scope was not narrowed by the HSN's separate mention of sleeping bags. The classification was upheld against the assessee. For valuation, where the sale price represented the assessee's total realisation, it had to be treated as cum-duty price inclusive of excise duty. The duty computation based on treating sale price as assessable value was corrected, and recomputation on a cum-duty basis was directed, giving the assessee partial relief.

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Issues: (i) Whether sleeping bags are classifiable under Chapter heading 94.04 of the Central Excise Tariff Act, 1985; (ii) whether duty is to be recomputed by treating the sale price as cum-duty price.

Issue (i): Whether sleeping bags are classifiable under Chapter heading 94.04 of the Central Excise Tariff Act, 1985.

Analysis: Sleeping bags were treated as articles of bedding used by travellers and others on the move. Chapter heading 94.04 covers articles of bedding, and the corresponding HSN heading is identically worded. The fact that the HSN further subdivides the heading to specifically mention sleeping bags did not narrow the scope of the excise heading.

Conclusion: The classification of sleeping bags under Chapter heading 94.04 was upheld, against the assessee.

Issue (ii): Whether duty is to be recomputed by treating the sale price as cum-duty price.

Analysis: Where the sale price represents the total realisation of the assessee, it must be treated as cum-duty price inclusive of excise duty. The duty amount had been worked out by treating the sale price as assessable value, which required correction.

Conclusion: The duty was required to be recomputed on the basis of cum-duty price, in favour of the assessee.

Final Conclusion: The classification was sustained, but the duty computation was set aside for recomputation by the jurisdictional authority on a cum-duty basis, resulting in a partial relief to the assessee.

Ratio Decidendi: For tariff classification, a heading covering articles of bedding may include sleeping bags even if the HSN separately sub-classifies them; for valuation, the sale price must be treated as cum-duty price where it represents the assessee's total realisation.

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