9911796707
TMI Blog2006 (9) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... of 233B. They had wanted to classify the same under CSH 7101.40. The Assistant Commissioner vacated the protest lodged by the assessee under order in original dated 18-6-96 and approved the classification of subject watches under CSH 9101.00. He observed that classification of goods had to be determined according to the terms of the heading and relative Section or Chapter note as per Rule 1 of Rules of interpretation of Schedule to CETA 1985. He found that as per Note 2 to Chapter 91, heading 9101 covered watches with cases wholly of precious metal and that the subject goods conformed to the above description. 2.The assessee filed appeal against the above order on the grounds that the subject watches had not only cases of precious metal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Commissioner upheld the order of the Assistant Commissioner. 4.In the instant appeal, the appellant M/s. Titan Industries Ltd. have sought to vacate the orders of the lower authority on the following grounds. The customer purchased those articles not because he was interested in a watch but because he was keen to wear a jewellery item to adorn his wrist. Customer sought the item for its ornamental value and not for its time keeping function. In the mind of the customer, the association between the subject article and the need it supplied in his life, was as an ornament. The dominant character and purpose, functionality, treatment of the goods by the trade etc. supported its classification as an ornament. The lower authorities had ov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to serve only as an item of jewellery. The argument that CSH 91.01 confined to watches which had cases wholly of precious metal alone is misconceived. The tariff entry CSH 9101.00 is reproduced below : 91.01 :Wrist watches, pocket-watches and other watches, including stop-watches, with case of precious metal or of metal clad with precious metal Note 2 to Chapter 91 reads as follows : "Heading No. 91.01 covers only watches with case wholly of precious metal or of metal clad with precious metal, or of the same materials combined with natural or cultured pearls, or precious or semi precious stones (natural, synthetic or reconstructed) of Chapter 71. Watches with case of base metal inlaid with precious metal fall in heading 91.02" ..... X X X X Extracts X X X X X X X X Extracts X X X X
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