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TMI Blog2019 (3) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... ludes articles falling under chapter 39 from this chapter. Similarly, chapter note 2(x) of chapter 39 excludes articles falling under chapter 94. Thus, the chapter notes mutually excluding each other do not help in determining the classification. Therefore, Rule 3(a) of the general rules of interpretation must be applied to which is a more specific entry. The article in question is a polyurethane article made specifically for fitting on furniture or coach seats, etc., and is not a seat in itself. This, is a more specific description of the goods in question than a seat. Therefore, the goods in question are correctly classifiable under 3926 3010. Confiscation - Penalty - Held that:- The classification in favour of the revenue. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in the shape and size of the seat and the outer cover has to be added and it has to be fixed to the frame to complete the seat. The appellant classified these cushions meant for seats, as seats under chapter heading 9401 of the Central Excise Tariff. 2. It is the case of the Revenue that since the appellant is not manufacturing seats but are only manufacturing articles of polyurethane foam which cannot be used as seats unless they are fixed to the frame of the chairs/buses/car seats, and upholstered, their products are classifiable as articles of foam under chapter heading 39263010. The consequence of such reclassification is that the appellant will not be eligible to avail the benefit of SSI exemption available to manufacturers unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods in question are classifiable as seats under chapter heading 9401 and not as articles of polyurethane foam under chapter 39263010 of the Central Excise Tariff Act, 1985. He held that 9401 is a more specific description than the description under 39263010 and that the goods in question cannot be used as anything other than seats and therefore they are classifiable under 9401. Accordingly, they are entitled to the Notification No. 08/2003-CE. Concluding so, he has dropped the demands in both show cause notices. 4. The Department s appeal is on the ground that the goods in question cannot be called as seats and that are just polyurethane foam products molded in pre-determined shape. In CBEC Circular No. 10/89, dated 10.02.1989, it was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured as seats should be classified under chapter 94.01. He also relies on the judgment of the Hon ble Supreme Court in the case of CCE, Kanpur Vs. Matador Foam [2005 (179) ELT 257 (S.C.)] in which, vulcanized rubber, cut into the shape of seats of motor vehicles and two wheelers may be classified under chapter heading 94.01. He would further argued 94.01 being a (20) 30 which is a more specific entry. 7. We have considered the arguments on both sides and perused the records. The question to be answered is whether the polyurethane products manufactured by the appellant are classifiable under 9401 as seats or under chapter heading 39263010 as fittings for furniture, coach work or the like of polyurethane . It is not in dispute tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es are as follows: 9401 seats (other than those of heading 9402) whether or not convertible into beds and parts thereof. 39263010 3926 - other articles of plastics and articles of materials of heading 3901 to 3914 392630 - Fittings for furniture, coach work or the like. 39263010 - of polyurethane foam. The Adjudicating Authority held that 9401 is the correct tariff heading on two grounds: a) 9401 is a more specific heading than 39263010. b) The Tribunal in the case of U-Foam Industries Ltd., [1999 (105) ELT 232 (Tri.)] and Maruthi Udyog Ltd., [1998 (101) ELT 675 (Tri.)] held that such products fall under 9401. We find in neither of these two cases, the question of classification between 9401 and 3926 3010 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, chapter note 2(x) of chapter 39 excludes articles falling under chapter 94. Thus, the chapter notes mutually excluding each other do not help in determining the classification. Therefore, Rule 3(a) of the general rules of interpretation must be applied to which is a more specific entry. Ld. Adjudicating Authority felt that 9401 was a more specific entry. We find that this heading deals with seats. The article in question is a polyurethane article made specifically for fitting on furniture or coach seats, etc., and is not a seat in itself. This, in our view is a more specific description of the goods in question than a seat. Therefore, we hold that the goods in question are correctly classifiable under 3926 3010. 10. Accordingly, on m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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