Central Excise Law

Choosing the right heading or sub-heading of the Tariff and determining the applicable rate for the particular goods is commonly referred to as classification of goods. A 3-judge Bench of Supreme Court has laid down the following parameters for determination of classification of goods:-

1.HSN along with Explanatory Notes provides a safe guide for interpretation of any entry.

2.Equal importance to be given to Rules of Interpretation of the Tariff.

3.Functional utility, design, shape and predominant usage have also got to be taken into account.

Aforesaid aids are more important than names used in trade or common parlance.