TaxTMI 
TaxTMI 
2025 (9) TMI 1287
X X X X Extracts X X X X
X X X X Extracts X X X X
.... The Assistant Commissioner relied upon the test report of the Indian Institute of Gemology, New Delhi, in the case of the present appellant in previous import, in which case the opinion was that the goods imported were glass chatons, which could not be called glass beads. The report further stated that to be called bead, it must have a hole or the shape should be such that it can be strung as in jewellery string, necklace or rosary. Before the Commissioner (Appeals), the appellant relied upon the judgment of Hon'ble High Court of Bombay in the case of Starlite Corporation Vs UOI [1989 (39) ELT 538], whereas, the Commissioner (Appeals) did not cite any reason as to why this judgment is not applicable and relied upon the meaning of bead in the Oxford dictionary. 3. Learned Counsel for the appellant submitted that the classification is finally settled in the appellant's own case in respect of same goods earlier imported by coordinate bench at Bangalore in VMB Impex Vs CCE, C & ST [2015 (321) ELT 522 (Tri-Bang)], wherein, the order passed relying on the opinion given by Indian Institute of Gemology, New Delhi, was set aside and the classification as claimed by the appellant under C....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 7018 20 00 -Glass microspheres not exceeding 1 mm in diameter Kg. 10% - 7018 90 . . . . 7018 90 10 Other: Kg. 10% - 7018 90 90 Glass statues Kg. 10% - Other 4.1 It is noticed that the Sub-heading 70181020 covers only "Beads". The HSN explanatory notes to Heading 7018 described Glass Beads as follows: "(A) Glass beads (e.g., as used for necklaces, rosaries, imitation flowers, ornaments for graves, etc.; for decorating textile articles (trimmings, embroidery, etc.), handbags or the like; or for use as electrical insulators). These beads, whether or not coloured, are in the form of small pierced balls, more or less round in shape; they are obtained from tubes which are cut into sections of approximately equal length and diameter. The resulting small cylinders are then introduced, together with a mixture of powdery materials (charcoal, graphite, plaster, etc), into a metal drum revolving over a furnace. Heat softens the glass cylinders and friction given....
X X X X Extracts X X X X
X X X X Extracts X X X X
....andatory condition for being operable without any external source of power. We are thus unable to agree with the Appellants that only ADPs with a built-in power source is necessarily required to be classified under 'Tariff Item 8471 30 10'. In other words, no element of 'functionality' is contemplated for the purpose of classifying the Concerned Goods as 'portable'." • In the case of M/s. Theremax Ltd- 2022 (382) ELT 442 6. The definition of a product given in the HSN should be given due weightage in the classification of a product for the purpose of levying excise duty. This is because in the Statement of Objects and Reasons of the Bill leading to enactment of Central Excise Tariff Act, 1985, it was clearly stated that the pattern of tariff classification is broadly based on the system of classification derived from the International Convention on the Harmonised Commodity Description and Coding System (Harmonised System) with such contraction or modification thereto as are necessary, to fall within the scope of the levy of Central Excise duty. The tariff so suggested for the levy under the Indian Tariff Act is based on an internationally accepted nomencl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....HSN unless there be an express different intention indicated by the Central Excise Tariff Act, 1985 itself. The definition of a term in the ISI Glossary, which has a different purpose, cannot, in case of a conflict, override the clear indication of the meaning of an identical expression in the same context in the HSN. In the HSN, block board is included within the meaning of the expression "similar laminated wood" in the same context of classification of block board. Since the Central Excise Tariff Act, 1985 is enacted on the basis and pattern of the HSN, the same expression used in the Act must, as far as practicable, be construed to have the meaning which is expressly given to it in the HSN when there is no indication in the Indian tariff of a different intention." 7. Commenting on the importance of taking guidance from HSN Classification and how a taxing statute should be construed in consonance with their commonly accepted meanings in the trade and popular sense, Justice Sanjiv Khanna in D.L. Steels (supra) also so correctly observed as follows :- "9. The Harmonised System of Nomenclature9, developed by the World Customs Organisation, has been adopted in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....se attributed to it by those people who are conversant with the subject matter that the statute is dealing with. This principle should commend to the authorities as it is a good fiscal policy not to put people in doubt or quandary about their tax liability. The common parlance test is an extension of the general principle of interpretation of statutes for deciphering the mind of the law-maker. However, the above rule is subject to certain exceptions, for example, when there is an artificial definition or special meaning attached to the word in a statute, then the ordinary sense approach would not be applicable." From the above, it is apparent that the custom tariff itself was different when decision of Tribunal in the case of M/s. Art Beads Pvt Ltd was given and the same was the condition when the decision of Hon'ble High Court of Bombay was given in the case of M/s Starlite Corporation. In both these cases the classification was not being examined under the new custom tariff and in both these cases the explanatory notes given in HSN were not brought to the knowledge of the Courts. In these circumstances, the decisions given in the context of new custom tariff purely relyi....