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Issues: Classification of stainless steel circles under Heading 73.15 (1) or 73.15 (2) of the Customs Tariff Act, 1975.
Analysis: 1. The petitioner argued that stainless steel circles imported by them should be classified under Heading 73.15 (1) instead of Heading 73.15 (2) as determined by the Authorities. The contention was based on the interpretation of the term "sheets" under Heading 73.15 (2) without any specific clarification in the Schedule. Reference was made to Note 'N' under Heading 73.13, which provides a specific meaning to 'sheets' or 'plates' of iron or steel. However, it was argued that the expression 'sheets' should not be narrowly interpreted to exclude circles, as Heading 73.15 encompasses alloy steel and high carbon steel, including stainless steel, in various forms. 2. The absence of any explicit restriction on the definition of 'sheets' in Heading 73.15 (2) led to the conclusion that stainless steel circles cannot be excluded from the category of 'sheets' and placed under Heading 73.15 (1). A similar argument was upheld by the High Court of Delhi in a previous case, emphasizing that the shape of the sheet, whether circular or otherwise, does not alter its classification as a sheet. The generic term 'sheet' encompasses various shapes, including circles, squares, and rectangles. 3. The principle of interpreting fiscal statutes in favor of the citizen was invoked by the petitioner's counsel to argue for a beneficial construction of the classification. However, the Court found no ambiguity in classifying stainless steel circles as 'sheets' under Heading 73.15 (2), thereby negating the need to apply the principle in this case. 4. Reference to analogous legislations and standards specifying stainless coils and circles separately was made by the petitioner's counsel to support their argument. However, the Court held that such comparisons were not relevant for interpreting the specific provision under consideration. It was reiterated that tax imposition or exclusion cannot be determined by analogy to other statutes. 5. Lastly, the Court dismissed the Writ Petitions, upholding the orders of the Authorities classifying stainless steel circles under Heading 73.15 (2). The judgment emphasized that the term 'sheets' under the said heading includes circles and rejected the petitioner's arguments regarding separate treatment of circles in other statutes or standards. The Writ Petitions were dismissed without costs.
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