Classification of plastic seats as furniture under Heading 94.01 entitled them to exemption under the notification.

Plastic seats were held to be furniture by themselves under Heading 94.01, not mere parts of plastic chairs, because Heading 94.01 separately covers seats and Chapter Note 2 of Chapter 94 with the HSN explanatory notes treats seats as distinct from parts. That interpretation preserved the scope of Notification No. 80/90-C.E., since denying the exemption on the basis that seats are only parts would make the concession ineffective where parts are not independently covered. The Board's circular also supported classification under Heading 94.01, so the seats were entitled to the notification benefit.

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Issues: Whether plastic seats are to be treated as parts of plastic furniture or as furniture by themselves for the purpose of exemption under Notification No. 80/90-C.E. dated 20-3-1990.

Analysis: Heading 94.01 separately refers to seats and parts thereof, and Chapter Note 2 of Chapter 94, together with the HSN explanatory notes, supports the view that seats are distinct from parts. The notification grants concessional duty to goods falling under Heading 94.01, and if seats are denied the benefit on the footing that they are merely parts, the exemption would be reduced to nothing because parts are not independently covered. An interpretation that makes the notification ineffective is to be avoided. The Board's circular also supports the classification of such seats under Heading 94.01.

Conclusion: Plastic seats are furniture by themselves and not parts of plastic chairs; they are entitled to the benefit of Notification No. 80/90-C.E. dated 20-3-1990.

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