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TMI Blog2005 (1) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... than hardened rubber, and their goods are cut to the shape of seats of motor vehicles or two wheelers. The Respondents had filed a classification list showing the products under Tariff Heading 40.08. This had been approved. However, a show cause notice dated 17th May 1990 was issued by the Assistant Commissioner raising a demand for the differential duty on the ground that the products should correctly be classified under Tariff Item 94.01. After giving a personal hearing, the Assistant Commissioner confirmed the demand. Thereafter, three further show cause notices dated 31st May 1990, 1st May 1990 and 31st May 1990 respectively were issued to the Respondents calling upon them to show cause as to why the benefit wrongly availed of them unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ider certain Chapter Notes which have been relied upon by the parties. In Chapter 94, Notes 1(a) and 2 read as follows : This Chapter does not cover"1. : Pneumatic or water(a) mattresses, pillows or cushions, of Chapter 39, 40 or 63; .................................................................................................................................................................................................................................................................... The articles (other than parts) referred2. to in heading Nos. 94.01 to 94.03 are to be classified in those headings only if they are designed for placing on the floor or ground. The following are, however, to be classified in the above-mentioned head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hape and surface-worked or further worked so as to render them fit for resoling or repairing or re-treading of rubber-tyres." 8.Mr. Jain, learned Counsel for the Respondents, has strongly relied upon Chapter Note 1(a) of Chapter 94 and submitted that pneumatic or water mattresses, pillows or cushions of Chapters 39, 40 and 63 are excluded from Chapter 94. He submitted that Respondents' goods are cushions falling under Chapter 40 and are thus covered by Tariff Item 40.08. They submitted that they are thus excluded from the purview of Chapter 94. He submitted that, therefore, Tariff Heading 94.01 cannot cover goods of the Respondents. 9.On the other hand, Mr. Venkataramani submitted that Tariff Item 94.01 is a specific Item, which deals wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seats and are used only in seats. They are thus cushions of seats and are parts of seats. They then fall under Tariff Heading 94.01 and Tariff Heading 40.08 thus get excluded. This view is also supported by H.S.N. Explanatory Note, which states that Tariff Entry 94.01 would cover all seats including seats of vehicles. 11.It must, however, be stated that seats of two wheelers get excluded from Chapter 94 by virtue of Chapter Note 1(h), which reads as follows : "1. This Chapter does not cover : ........................................................... (h) Articles of heading No. 87.14." 12.Chapter Note 87.04 specifically deals with parts of two wheelers. Therefore, seats of two wheelers would fall under Tariff Heading 87.14. 13.Mr. J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re binding on the Tribunal. Judicial discipline required that the Tribunal follow those Judgments. If the Tribunal felt that those Judgments were not correct, it should have referred the case to a larger Bench. The Judgment in the case of C.C.E., Madras v. M.M. Rubber Co. Ltd., Madras, reported in 1984 (15) E.L.T. 198, was based on the then Tariff Items 16A and 34A. Those Tariff Items were completely different. That Judgment has no relevance to the question under consideration.
17.In the above view, the impugned Judgment is set aside. It is held that the goods of the Respondents would fall under Tariff Heading 94.01.
18.The Appeals are accordingly allowed. There will, however, be no order as to costs. X X X X Extracts X X X X X X X X Extracts X X X X
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