2008 (3) TMI 99 - AT - Central Excise

Classification of branded word game Scrabble whether U/SH 9504.90 as a table or parlour game, as held by the excise authorities, or under CTH 95.03 as educational toy or puzzle, as contended by the manufacturers - It is not a toy, but it is a game so classifiable under SH 9504.90 in declaration assessee mentioned that they are mfg. toys and puzzles - Non-mentioning of word scrabble in declaration filed shows that they were not under bonafide belief demand not time barred

Summary

Issues:
Classification of the word game "Scrabble" - whether under CET sub-heading 9504.90 as a table or parlour game or under CTH 95.03 as an educational toy or puzzle.

Analysis:

1. The appeals involved the issue of classifying the word game "Scrabble" manufactured by a company. The excise authorities classified it as a table or parlour game under CET sub-heading 9504.90, while the manufacturers contended it should be classified under CTH 95.03 as an educational toy or puzzle.

2. The product "Scrabble" consists of various components and is described as a word game for multiple players aiming to form interlocking words on a playing board. The manufacturers argued that it is an educational toy for children, helping them enhance their vocabulary. They also claimed it could be considered a puzzle word game based on various dictionary definitions.

3. The Tribunal disagreed with the appellants, stating that "Scrabble" is neither an educational toy nor a puzzle. It is defined as a game played by one or more individuals to form words on a board. The Tribunal highlighted that Scrabble is played competitively with winners and losers, unlike puzzles which involve a single individual finding a solution.

4. The Tribunal referenced a Supreme Court decision regarding the classification of toys, distinguishing "Scrabble" from being categorized as a toy. Additionally, a previous decision related to a word-building game was mentioned, emphasizing that being sold in a toy shop does not automatically classify a game as a toy.

5. The Tribunal upheld the Commissioner's finding that "Scrabble" is a parlour game falling under CET sub-heading 9504.90, considering its nature and how it is played in parlours, homes, clubs, and resorts.

6. Addressing the plea of time bar raised by the appellants, the Tribunal noted discrepancies in the information provided by the manufacturers to the department regarding the classification of "Scrabble." The Tribunal found the demand for duty not barred by limitation.

7. As the demands were upheld on both merits and limitation issues, the penalties imposed on the company and its power of attorney were deemed sustainable by the Tribunal.

8. Ultimately, the Tribunal upheld the impugned orders and rejected the appeals, concluding the classification of "Scrabble" as a parlour game under CET sub-heading 9504.90.

This detailed analysis covers the classification issue of the word game "Scrabble" and the Tribunal's reasoning behind upholding the Commissioner's decision.