COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR (PUNJAB) versus M/S D.L. STEELS ETC

Citation: [2022] 17 S.C.R. 151 · Decided: 11-07-2022 · Supreme Court of India · Bench: SANJIV KHANNA · Disposal: Dismissed

Cited by 1 judgment(s) · cites 3 · see the full citation network in Lexace

Judgment (excerpt)

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   [2022] 17 S.C.R. 151
151
COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE,
AMRITSAR (PUNJAB)
v.
M/S D.L. STEELS ETC.
(Civil Appeal Nos. 2360-2376 of 2009)
JULY 11, 2022
[SANJIV KHANNA AND BELA M. TRIVEDI, JJ.]
Customs Tariff Act, 1975 – Dispute regarding classification
of dried pomegranate seeds/‘anardana’ in tariff entries under
Heading 0813 as claimed by the Customs Authorities or under
Heading 1209 as claimed by the Respondents/importers –
Respondents imported two consignments of ‘anardana’ from
Pakistan and they classified the goods under the tariff sub-heading
1209.99.90 which attracts basic custom duty at the rate of 5% plus
education cess at the rate of 2% – However, according to Customs
Authorities the goods falls under sub- heading 0813.40.90 which
attracts basic customs duty at the rate of 30% plus education cess
at the rate of 2% – Adjudicating authority confirmed the differential
duty and imposed a personal penalty on the Respondent along with
interest – First appeal preferred by the Respondents were allowed
by the Commissioner (Appeals) opining that the Heading 0810
applies to the type of pomegranate which is consumed as a fruit
and on the other hand, goods/‘anardana’ were the dried form of a
type of pomegranate which, when fresh, is not consumed as a fruit,
therefore heading 0810 would have no relevance to the type of
pomegranate from which the goods are obtained – Aggrieved, the
Revenue preferred appeals before the CESTAT – Appeal was
dismissed observing that in Explanatory Notes to the Heading 1209,
the goods did not fall in the list of items expressly excluded from
sub-heading 1209.99.09, they very well stood included in the sub-
heading 1209.99.90 and therefore, sub-heading 0813.40.90 was
not applicable – Further, words in a taxing statute must be construed
in the same sense as understood in common or trade parlance, and
the Revenue had failed to lead any evidence to support its contention
that in trade parlance, the goods are understood as dried fruits –
On appeal, held: Once the finding of fact recorded by the CESTAT
is accepted that ‘anardana’ is a dried product of local ‘daru’ or
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SUPREME COURT REPORTS
[2022] 17 S.C.R.
wild pomegranate, which grows in mid hill conditions and which
fruit in its fresh form is different from the pomegranate included in
clause 7 to Heading 08.10, as this wild pomegranate is not consumed
as a fresh fruit, the contention of the Revenue must fail –
Classification arrived by CESTAT upheld.
Interpretation of Statutes – Principle of Common Parlance/
Common Parlance test – When a word is not explicitly defined, or
there is ambiguity as to its meaning, it must be interpreted for the
purpose of classification in the popular sense, which is the sense
attributed to it by those people who are conversant with the subject
matter that the statute is dealing with – It is an extension of the
general principle of interpretation of statutes for deciphering the
mind of the law-maker – However, the above rule is subject to certain
exceptions, for example, when there is an artificial definition or
special meaning attached to the word in a statute, then the ordinary
sense approach would not be applicable.
Words and Phrases – Meaning of the word ‘edible’ – Derived
from the latin word ‘edibilis’ which means eatable - must be construed
using the principle of common parlance test
Words and Phrases – Meaning of the word ‘seed’ – In common
parlance and in commercial sense means the grains or ripened
ovules of plants using for sowing- ‘anardana’ is prepared by
dehydrating the arils of wild pomegranates and not from the
pomegranate which is eaten as a fresh fruit.
Dismissing the appeals, the Court
HELD: 1.1. The word ‘seed’ in common parlance and in
commercial sense means the grains or ripened ovules of plants
used for sowing. The normal function of a seed is to germinate
and produce a new plant. Broadly, a seed includes a propagative
structure such as a spore, or a small dry fruit. Some fruit and
vegetable seeds are edible and are used by human beings as
food or even as condiments.[Para 24][170-D-E]
1.2.The Court observed that once the finding of fact
recorded by the CESTAT is accepted that ‘anardana’ is a dried
product of local ‘daru’ or wild pomegranate, which grows in mid
hill conditions and which fruit in its fresh form is different from
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the pomegranate included in clause 7 to Heading 08.10, as this
wild pomegranate is not consumed as a

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