TaxTMI 
TaxTMI 
2019 (3) TMI 1014
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....te of 1.5% CGST and 1.5% SGST. It was argued by the appellant that the cost of the jewellery includes cost of Gold, Silver, Diamond etc. of very high value but a watch is fitted in the jewellery selected by the customer, the cost of which is very nominal i.e. not even 1% of total value. It was submitted that the customers intend to buy jewellery only. The appellant referred to the definition of the term 'jewellery' given in various dictionaries and submitted that the articles dealt with by the appellant fully satisfy the definition of the term 'jewellery'. The appellant referred to Chapter Note 9 of Chapter 71 of the Customs Tariff Act, 1975. They relied upon the judgement of Hon'ble High Court of Gujarat in the case of State of Gujarat Vs. Titan Industries Ltd. = 2017 (2) TMI 521 - GUJARAT HIGH COURT and Determination Order issued under Gujarat VAT Act in their own case. The appellant submitted that as per 'common parlance' test also, the articles sold by them are nothing but articles of jewellery. It was also submitted that the articles sold by them are expensive not because of their superiority as time keeping devices, but because of their ornamental value and essential characte....
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.... 71, 'articles of jewellery' have been defined to mean small objects of personal adornment and illustrations given in the note fully covers the various articles manufactured and sold by the appellant. It has been submitted that the products have been misconstrued as watches and hence held as falling under Heading 9101 by relying upon the Chapter Notes of that Heading. It is also submitted that essentially the good sold by the appellant are articles of jewelry. 7.2 We have examined the issue. The meaning of expression 'articles of jewellery' for the purpose of heading 7113 has been given at Chapter Note 9 of Chapter 71 of the Customs Tariff Act, 1975. However, the said Chapter Note does not include the objects of personal adornment or articles of personal use containing 'watch movement'. On the other hand, Chapter Note 3(1) of Chapter 71 of the Customs Tariff Act, 1975 specifically excludes articles of Chapter 91 (clocks and watches). The Chapter Notes of Chapter 91 of the Customs Tariff Act, 1975 as well as Explanatory Notes of Harmonised System of Nomenclature of Heading 9101 and 9102 covers watches with case wholly of precious metal or of metal clad with precious metal, or of th....
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....s observed that the appellant has relied upon these judgements before the GAAR also. While holding that the judgement dated 03.02.2017 of the Hon'ble High Court of Gujarat in Tax Appeal No. 46 of 2017 in case of State of Gujarat Vs. M/s. Titan Industries Limited and Order dated 10.01.2011 = 2017 (2) TMI 521 - GUJARAT HIGH COURT issued under Section 80 of the Gujarat Value Added Tax Act, 2003 in the appellant's own case are not applicable in the facts of the present case, the GAAR observed that the said judgement and Order pertain to classification of goods under Entry 13(ii) of Schedule-II of the Gujarat Value Added Tax Act, 2003. The GAAR noted that the scheme of classification of goods under the Gujarat Value Added Tax Act, 2003 was different than the scheme of classification of goods for the purpose of Notifications issued under the CGST Act, 2017 and the GGST Act, 2017, which is based on the Fist Schedule to the Customs Tariff Act, 1975. The appellant has also not disputed these facts. It is settled principle of law that the judgement rendered in different context cannot be applied to another fact scenario. 10.1 We have also gone through the decision of Hon'ble Customs, ....
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....orically claimed to be to serve only as an item of jewellery. It was also held that the argument that CSH 9101 confined to watches which had cases wholly of precious metal alone is misconceived. Hon'ble CESTAT also held that the argument that items such as a table, a pen, or an instrument panel incorporating a time keeping device do not get classified as watch but as the respective article does not advance the appellant's case that a watch having a case with precious metal and bracelet with precious metal studded with precious stones is not a watch. It was also held that Rule 3(b) of the interpretative rules is resorted to only if the rules preceding it do not help classify an item, therefore, the necessity of resorting to classification with reference to material or component which gives the item its essential character is not relevant in the instant case. Hon'ble CESTAT also referred to Chapter Note 1(k) to Chapter 71 providing that Chapter does not cover articles of Chapter 91, and held that therefore a watch made of precious metal also cannot be classified under Chapter 71. It was further held that the HSN explanatory notes to Chapter 91 clarify that articles of precious metals....