TaxTMI 
TaxTMI 
1997 (3) TMI 95
X X X X Extracts X X X X
X X X X Extracts X X X X
.... by the importers. The appellants in Civil Appeal Nos. 10334-36 of 1995 are Union of India. They have challenged a decision of the Madras High Court holding that the stainless steel circles imported by the respondents therein are classifiable under Customs Tariff Entry 73.15(1) and not under Customs Tariff Entry 73.15(2) as contended by the appellants therein. The Madras High Court has followed an earlier decision of the Division Bench of that court in Venkateshwara Stainless Steel & Wire Industries v. Union of India [1991 (53) E.L.T. 312 (Mad.)] in so holding. 2.All these appeals raise a common question regarding the classification of stainless steel circles imported by the assessees. For the sake of convenience, we are referring to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....dings 73.06/07 to 73.14 deal with iron and steel products. The forms of iron and steel items which are mentioned in these entries, inter alia, are puddled bars, pilings, ingots, blocks, lumps, coils for re-rolling, bars and rods, angles, shapes and sections, hoops and strips, sheets and plates and so on. Heading 73.13 deals with sheets and plates of iron or steel, hot-rolled or cold-rolled. It is divided into two parts : (1) Not elsewhere specified and (2) Tinned sheets and plates. Circles are not expressly mentioned in any of these entries. Entry 73.15 which deals, inter alia, with stainless steel, is also divided into two parts : (1) Not elsewhere specified and (2) Coils for re-rolling, bars, rods, wire rods, strips sheets and plates of s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ll apply, inter alia, to sheets or plates which have been cut to non-rectangular shapes. The department, therefore, contends that a circle is nothing but a sheet which is cut to a non-rectangular shape. It will, therefore, be covered by the term "sheet". Hence in Heading 73.15 also "sheet" in sub-heading 73.15(2) will cover a circle. 8.Webster's Comprehensive Dictionary defines a "sheet" as : (1) a very thin and broad piece of any substance; that which is or can be spread, as upon a surface, or can be laid in broad folds; anything having a considerable expanse with very little thickness. (2) A large rectangular piece of linen or cotton cloth, used in making up a bed. (3) A piece of paper, especially one of a regular size; hence, a newspa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rring to them only for the purpose of showing that sheets and circles have been considered as two different forms in which a metal can be manufactured or sold. 9.Since forms which are not specifically set out in Tariff Heading 73.15(2) will have to be classified under 73.15(1), circles of stainless steel will have to be classified under Heading 73.15(1). Note 1(n) does not provide much assistance in this connection. In respect of Heading 73.13 which deals with sheets and plates, the note says that sheets or plates which have been cut to non-rectangular shapes will also be classified as sheets or plates. But when stainless steel is in the form of a circle, it assumes a specific form and it cannot be treated merely as a stainless steel she....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tions or circles are difficult to accept for reasons we have set out. We are, therefore, inclined to agree with the view taken by the Madras High Court in Venkateshwara Stainless Steel & Wire Industries's case (supra). The Delhi High Court has, however, in the case of Super Traders and Anr. v. Union of India and Ors. [1983 E.L.T. 258 (Del.)] taken a contrary view holding that stainless steel circles are nothing but stainless steel sheets and are classifiable under Heading 73.15 (2). It has relied upon Chapter Note 1(n) and has held that stainless steel circles are stainless steel sheets cut to non-rectangular shape. In our view, this is not a correct reading of Note 1(n). A circle is a very specific form in which stainless steel is marketed....