1988 (12) TMI 272

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..... be given to the heading the groundnut occurring under description of article in Heading No. 20 to the Second Schedule - Export Tariff. Heading No. 20 reads as follows : Groundnut- (i) Groundnut Kernel (ii) Groundnut in Shell" 3. It is common ground, the respondents in all these appeals have exported blanched and roasted peanuts and the same have been subjected to export duty as if the export of blanched and roasted peanuts will fall under Heading No. 20(i) of Schedule II to the Export Tariff. 4. The learned Judge, accepting the case of the respondent that meaning given to articles in a fiscal statute must be as people in the trade and commerce conversant with the subject generally treat and understand them in usual course .....

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..... ourt in Atul Glass Industries (P) Ltd. v. Collector of Central Excise (A.I.R.1986 SC 1730 AT PAGE 1735) already referred, it is a matter of common experience that too identity of an article is associated with its primary function. It is only logical that it should be so. When a consumer buys an article he buys it because it performs a specific function for him. There is a mental association in the mind of the consumer between the article and the need it supplies. It is the functional character of the article which identifies it in his mind. Accordingly, in the Commissioner of Sales Tax, U.P. v. Macknetil and Barry Ltd. (A.I.R. 1985 SC 386) it was held that Ammonia paper and ferro paper used for obtaining prints and sketches of site plans no .....

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..... The Collector of Customs has failed to see that all the varieties of coffee and all the varieties of tea are intended for consumption which is not the case of the groundnut kernels and blanched roasted peanuts. The former is primarily used for extraction of oil while the latter is intended for direct consumption. Hence the conclusion of the department that groundnut kernel covers blanched and roasted peanuts and they fall under Heading No. 20(i) of the Export Tariff is such as no reasonable person could adopt. 6. We are in agreement with the above discussion and conclusion of the learned Judge. We are unable to accept the contention raised by Mr. Narasimhan, learned Counsel appearing for the Department/Appellants. 7. In the result, .....

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