9911796707
TMI Blog1994 (5) TMI 112X X X X Extracts X X X X X X X X Extracts X X X X ..... arose from a common order-in-original, therefore, the disposal of two appeals arising out of one Order-in-Original could mean disposal of two appeals and not three. The assessee is aggrieved with the Order-in-Original in respect of denial of exemption of Notification No. 107/88, dated 1-3-1988, on which they have come up in appeal before us. The other matter pertains to confirmation of duty of Rs. 95,185.98. Therefore, these were the two issues before the ld. Collector (Appeals) and the same is being agitated before us and, therefore, the question of filing one more appeal does not arise. The facts of these cases are that the assessee, is a SSI unit, engaged in the manufacture of different types of kitchen knives. Accordingly, they had filed classification list No. 23/89-90 classifying their product as knives with cutting blades, serrated or not under sub-heading 8211.00 and had claimed the benefit of exemption under Notification No. 107/88-C.E., dated 1-3-1988 as amended. They also started manufacturing knives-cum-scissor sharpner from November, 1989, and as such, they filed a supplementary classification list bearing IDO No. 114/89 classifying the said product under sub-heading ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out to this preamble, ld. Advocate submitted that the sub-headings of the Chapter 82 had not been specified in the notification. Therefore, Serial No. 03 referred to Spoons, forks, ladle, skimmers, cake-servers, fish-knives, butter-knives, sugar tongs and similar kitchen or tableware . And, therefore, the product knives with cutting blades is to fall within the description given in the said Serial No. 03. Pointing out to sub-heading 82.11, which reads as follows : Knives with cutting blades, serrated or not (including pruning knives), other than knives of Heading No. 82.08, and blades therefore. the ld. Advocate submitted that the goods had been classified under this sub-heading, although, the goods should get the benefit under Serial No. 03 of the notification which had a different description in conformity with sub-heading 82.15. Ld. Advocate submitted that the reasons as to why they should get the benefit is that the notification did not specify the sub-heading and, therefore, the notification had to be read strictly in a way that if the product could satisfy the description of Serial No. 03, then they should get the benefit, notwithstanding, the fact that there was a mor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g 8205 as a hand tool is more appropriate. According to page 1107 of the Explanatory Notes of HSN dealing with the Heading 82.05, the item was clearely covered therein. He submitted that the item cannot be considered as product of plastic and the classification has to be done according to the essential character of the goods. 6. We have carefully considered the submissions made by both the sides and have perused the rulings relied before us. We do not see any merits in these appeals. The description of sub-heading 82.15 has been extracted in Serial No. 03 of the notification in question. They are identically worded. The description given in Serial No. 03 of notification clearly refers to the goods of description of Heading 82.15 only. Therefore, they have to be read accordingly, even though the preamble of the notification may not have mentioned the sub-heading. This has been the view expressed in one of our latest orders in the case of M/s. Western Refrigeration (P) Ltd. v. Collector of Customs, Bombay as per Final Order No. C/15/94-B2, dated 7-2-1994. In this case the Bench has relied on several rulings of the Tribunal as rendered in the case of : (i) Eagle Flask Industrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers, scissors, can openers, etc.); pocket folding knives for pruning, budding, grafting etc. (4) Knives with several interchangeable blades, whether or not these are contained in the handles. The heading also covers blades for the manufacture of the knives listed above which may be in the form of crude or machined blanks, polished or completely finished blades. Handles of base metal for the knives of this heading are also included. In addition to the exclusions mentioned in the first paragraph above, the heading also excludes : (a) Bill hooks and matchets (Heading 82.01). (b) Articles of cutlery of Heading 82.14. (c) Fish knives and butter knives (Heading 82.15)." As can be seen from the above note, a knife with cutting blades is classified under this heading. The fish-knives and butter knives are classified under Heading 82.15. Reading of HSN Explanatory Note on pages 1115 to 1116 clearly indicates that the fish-knives and butter-knives are of non-cutting type. The notes on similar tableware shown in Serial No. 7 at page 1116 refers to poultry or meat grips and lobster or unit grips . The note given in pages 1115 and 1116 is reproduced herein below :- This Head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eading 82.05. The HSN Explanatory Note at page 1107 clearly includes knives sharpners. The said Explanatory Note under description E(1) includes `steel and other knives sharpners of steel . The Note E(1) is reproduced herein below : E(1) A number of household articles, including some with cutting blades but not including mechanical types (see the Explanatory Note to Heading 82.10), having the character of tools and accordingly not proper to heading 73.23, such as : Flat irons (gas, paraffin (kerosene), charcoal, etc., types, but not electric irons which fall in Heading 85.16), curling irons; bottle openers, cork screws, simple can openers (including keys); nut-crackers, cherry stoners (spring types); button hooks; shoe horns; steels and other knife sharpners of metal; pastry cutters and jaggers; graters for cheese, etc; lightning mincers (with less cutting wheels); cheese slicers, vegetable slicers; waffling irons; cream or egg whisks, egg slicers; butter curlers; ice picks; vegetable mashers; larding needles; pokers, tongs, rakers and cover lifts for stoves or fire places." 8. The chapter note of Chapter 82 clearly stipulates that goods with a blade, working edge, work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 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 in his life. It is the functional character of the article which identifies it in his mind. In the case of a glass mirror, the consumer recalls primarily the reflective function of the article more than anything else. It is a mirror, an article which reflects images. It is referred to as a glass mirror only because the word glass is descriptive of the mirror in that glass has been used as a medium for manufacturing the mirror. The basic or fundamental character of the article lies in its being a mirror. It was observed by this court in Delhi Cloth General Mills Co. Ltd. v. State of Rajasthan and Others, (1980) 3 SCR 1109 which was a case under the sales tax law : In determining the meaning or connotation of words and expression describing an article or commodity the turnover of which is taxed in a sales tax enactment, if there is one principle fairly well settled it is that the words or expressions must be construed in the sense in which they are understood in the trade, by the dealer and the consumer. It is they ..... X X X X Extracts X X X X X X X X Extracts X X X X
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