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TMI Blog1985 (8) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to attend this hearing was duly sent to the learned advocate of M/s E.I.D. Parry (India) Ltd. However, when these matters were called, no one was present on their behalf. Since both the appellants and the respondents were present and ready to proceed, and since these appeals have been pending for quite some time and have been adjourned on a number of previous occasions, the Bench decided to proceed with the hearing of these appeals. 2. Before beginning the discussion of this case, it would be helpful to notice the relevant headings and other provisions of the Customs Tariff :- 68.01/16-Articles of natural or artificial stones, of agglomerated natural or artificial abrasives, of plastering material, of cement, of concrete, of asbestos, of asbestos-cement or cellulose fibre cement, or of mica; articles of vegetable materials agglomerated with mineral binders; mineral wools; expanded mineral materials, articles of other mineral substances, not elsewhere specified or included : (1) Not elsewhere specified (2) Grinding stones, grinding wheels and the like, of natural stone, of agglomerated natural or artificial abrasives, and segments or other finished parts of such stone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nch comprising three Members, as usual, on 30-4-1984. During the hearing, it was brought to the notice of the said Bench that similar goods imported by the same appellants were earlier the subject matter of a judgment by Special Bench D (Order No. D-234/83 dated 18/28-4-83 in Appeal No. 245/78-D). This was a majority judgment. Two Members of that earlier Bench had held that the goods were classifiable under Heading 84.65 and accordingly had allowed that appeal No. 245/78-D. The dissenting Member, relying on Note 1(a) to Chapter 84 of the Tariff, had upheld the Department s classification under Heading 68.01/ 16(1). During the hearing on 30-4-1984, the appellants relied on the earlier majority judgment of the Bench while the Department s representative relied on the dissenting judgment. After the hearing was over, the Bench reserved its orders. When members of the said Bench discussed the matter among themselves, they noticed that the Section Notes and Chapter Notes in the Customs Tariff Act were a part of the statutory tariff and were thus relevant in the matter of classification of goods under the Customs Tariff. The Bench also noticed that in the earlier majority judgment there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erve as would be seen from the texts of the competing headings reproduced in paragraph 2 above, that both Headings 68.01/16(1) and 84.65 are residuary items. If it were a simple matter to decide the classification of the subject spare parts made of carbon by a comparative reading of the two headings just by themselves, we would have no hesitation in saying that Heading 84.65 was more specific for the goods which were indisputably machinery parts. 7. But we observe that the Customs Tariff Act has not left the matter to be decided just on that basis. The relevant headings in the tariff have to be interpreted and applied in the light of the Section Notes and Chapter Notes which are statutory and binding like the headings themselves. These Section Notes and Chapter Notes sometimes expand and sometimes restrict the scope of certain headings. In other words, the scheme of the Customs Tariff Act is to determine the coverage of the respective headings in the light of the Section Notes and Chapter Notes. In this sense, the Section Notes and Chapter Notes have an over-riding force on the respective headings. 8. We also observe from paragraph 2 above that classification of machinery par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a settled principle of interpretation that no provision of the legislation should be rendered nugatory or redundant. We are of the considered view that Note 1(a) to Chapter 84 has to be given its full meaning and effect intended by the Parliament. We, therefore, hold that even folly finished machinery parts, if they are made of carbon, would fall under Chapter 68 as held by the lower authorities and not under Heading 84.65 as urged by the appellants. 10. The learned representative of the Department cited the Alphabetical Index to the CCCN and the Explanatory Notes to the CCCN to say that non-electrical articles made of carbon were classified by the CCCN under Chapter 68. He stated that the Explanatory Notes and the Index, though not legally binding, had persuasive value and Special Bench D had earlier accepted them as such in the case of M/s Durametallic India Ltd., Madras v. Collector of Customs, Madras-1983 E.L.T. 609 (CEGAT). Since, in this case, we have held that by virtue of Note 1(a) to Chapter 84, machinery parts made of carbon cannot fall under Chapter 84 and so would fall under Chapter 68, we do not consider it necessary to go into the point whether any reliance sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There is not even a hint that carbon or articles of carbon are to be covered by this entry. The items which are mentioned do not have any remote likeness or commonness with articles of carbon. Same is the position in regard to the exclusion Note 1(a) of Chapter 84 where, again, articles excluded from contemplation of that Chapter are : millstones, grind stones and other articles falling within Chapter 68 . 16. As already noticed, Chapter 68 does not, by express reference, include articles of carbon. Apart from the fact that principles of Ejusdem Generis, as pleaded by learned Counsel of the appellants, provide guide-lines in such cases and the normal rules of interpretation are that when in a Statute, etc., particular classes are specified by name, followed by general words, the meaning of the general words is cut down by reference to particular words and the general words are taken to apply to those Ejusdem Generis with the particular classes of the same kind or measure. (Reference page 115 of Law Dictionary by Mozley and Whitely, Ninth Edition by John B. Saunders). Going by this criterion, articles of carbon cannot be considered to be within the contemplation of Chapter 68 be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to note that there is no entry in the Notes to Chapter 68, similar to 68.16 of the CCCN Explanatory Notes, so as to include by a specific reference non-electrical articles of carbon under this Chapter. 20. In the absence of that, and in view of carbon not having been shown to be a mineral product in the Tariff, and as against that, as a species of inorganic chemicals under Chapter 28, I do not think that Chapter Note 1 (a) to Chapter 84 can be pressed into aid by the respondents; as the CTA does not treat carbon as a mineral substance, and so, articles of carbon cannot be held covered by Chapter 68. 21. It is pertinent to note that Chapter 25, which covers mineral products specified therein, is expressly excluded from Chapter 68, by virtue of Chapter Note 68(a). Thus, although Graphite occurs under Chapter 25 but apart from the fact that Graphite is not synonymous with carbon ; otherwise also even that is excluded from Chapter 68, because of Note (a) referred to above. The intention and scheme of the tariff is manifest to the effect that mineral substances contemplated by Chapter Heading 68.01/16, along with other specified articles are of an entirely different ge ..... 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