Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Customs Customs + SC Customs - 2008 (9) TMI SC This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2008 (9) TMI 66 - SC - Customs


Issues:
Classification of 'Tipper-Gold Tipped' brand under CSH-2403.11 or CSH-2403.13.

Analysis:
The main issue in this civil appeal was the classification of the 'Tipper-Gold Tipped' brand manufactured by the respondent-assessee under the Customs Tariff Act. The question was whether the product fell under CSH-2403.11 as "other than Filter Cigarettes" or under CSH-2403.13 as Filter Cigarettes. The Supreme Court emphasized that the basic character, function, and use of the product are crucial in determining its classification. The Court explained that a filter in a cigarette is made of non-tobacco material, such as viscose staple, which prevents tobacco from entering the smoker's mouth. In contrast, plain cigarettes do not have filters, and breaking a filter cigarette would reveal viscose staple, while breaking a plain cigarette would reveal tobacco. The 'Tipper-Gold Tipped' brand did not contain viscose staple in the filter end, indicating that it should be classified under CSH-2403.11 as "other than filter cigarettes."

The Court highlighted that the Rules of Interpretation of the tariff come into play only when classification cannot be determined based on the headings and relevant notes. In this case, the basic character, function, and use of the product were clear indicators for classification. The Court also noted that the respondent had presented evidence, including a report from a chemical analyzer and an expert witness. However, the Department did not cross-examine the expert witness presented by the respondent. Despite the evidence in favor of the respondent, the Court found no merit in the civil appeal and dismissed it, with no order as to costs.

In conclusion, the Supreme Court upheld the classification of the 'Tipper-Gold Tipped' brand under CSH-2403.11 as "other than Filter Cigarettes" based on the product's basic character, function, and use. The Court emphasized the importance of these factors in determining the classification of goods under the Customs Tariff Act and found no infirmity in the impugned judgment.

 

 

 

 

Quick Updates:Latest Updates