2008(07)LCX0057

In the Customs, Excise & Service Tax Appellate Tribunal, New Delhi

Shri S.S. Kang, Vice President and Shri Rakesh Kumar, Member (Technical)

Commissioner of Customs, Amritsar

Versus

D.L. Steels & Ors.

Final Order Nos. 205-221/2008-Cus. dt. 10.7.2008 certified on 29.7.2008 in Appeal Nos. C/287-297 and 341-346/2007

Advocated By -

Shri B.S. Suhag, DR for Appellant
Shri K.S. Mew, Adv. for Respondent

Per Rakesh Kumar :

The point of dispute in these 17 appeals of the Revenue is the classification of 'Anardana' in the Customs tariff - while according to Revenue, it is classifiable as 'other dried fruits' under sub-heading 08134090, according to the Respondent, it is classifiable as "other seeds for sowing" under sub-heading 12099990.


2. Heard both the sides.

2.1 Appearing on behalf of the Revenue, Shri B.S. Suhag, the learned Departmental Representative made the following submissions :-

(1) Anardana is not the seeds for germination. Though pomegranate plants can be raised from seeds, the same are generally raised from cuttings. Cuttings, not Anardana, is used to raise pomegranate plants.

(2) As per HSN explanatory notes to heading 12.09, the seeds which are used for purposes other than for sowing are excluded from the purview of this heading. Since Anardana is not used for germination and raising the pomegranate plants, but is used in food products and medicaments, it can not be classified under heading 12.09.

(3) Anardana is nothing but dried pomegranate. Pomegranate (Anar) is cored to obtain Anardana. It is used in medicaments and food products. Therefore, it is correctly classifiable as dried fruit under heading 08.13.

2.2 Shri K.S. Mew, Advocate, the learned Counsel on behalf of the respondents pleaded that HSN based EXIM Code for Anardana is 12099160, that Anardana is not known in trade parlance or common parlance as a dry fruit and that even the certificate of Dr. Y.S. Parma, Director, University of Horticulture & Forestry, Solan, relied upon by the Revenue also mentions that Anardana is not a dried fruit.


3. We have carefully considered the submissions from both the sides. Heading 08.13 covers dry fruit. The words in a taxing statute must be construed in the sense in which the same are understood in the common parlance or trade parlance. The Revenue has not lead any evidence in support of its claim that Anardana is understood as dry fruit in common or trade parlance. Mention of "Anardana" in the EXIM policy in Chapter 12 pertaining to "Oil Seeds and oleaginous fruits etc." against EXIM code 12099160, shows that in trade parlance, Anardana is understood as seed, not as dry fruit, as EXIM policy is a document meant for trade and industry.


4. HSN explanation notes to heading 12.09 mention that "this heading does not include products such as those mentioned at the end of this explanatory note, which, although intended for sowing, are classified elsewhere in the Nomenclature, because they are normally used other than for sowing. The excluded products mentioned at the end of the notes to heading 12.09 are - Mashroom Spawn (heading 06.02); Leguminous Vegetables & Sweet Corn (Chapter 7); fruits of Chapter 8, spices of Chapter 9, Cereal grain (Chapter 10), oil seeds and oleaginous fruits of heading 12.01 to 12.07, seeds and fruits used in perfumery, pharmacy or for insecticidal, fungicidal or similar purposes (heading 12.11) and Locust beans (heading 12.12). Anardana is not covered by the above excluded categories. Moreover, it is capable of germination. Therefore, the explanatory notes to heading 12.09, referred to by the Revenue are not applicable to Anardana.


5. In view of the above, we hold that Anardana is correctly classifiable under sub-heading 12099990 of the tariff. We, therefore, find no infirmity in the impugned order. The appeals filed by the Revenue are dismissed.

Equivalent 2008 (088) RLT 0200 (CESTAT-Del.)