M/S. DEEPAK AGRO SOLUTION LTD. versus COMMISSIONER OF CUSTOMS, MAHARASHTRA

Citation: [2008] 7 S.C.R. 1139 · Decided: 08-05-2008 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Appeal(s) allowed
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Judgment (excerpt)

[2b08] 7S.C.R1139 
· M/S. DEEPAK AGRO SOLUTION LTD. 
. \/. 
. COMMISSIONER OF CUSTOMS, MAH~RASHTRA 
· 
(Civil Appeal No. 5210 of 2006) 
MAY 8, 2008 
. (S.B. SINHA AND V.S. SIRPURKAR, JJ.) 
Customs Tariff Act - Tariff Heading 25.03 or 3~.0B -
'Brimstone 90' Classification of - Held: Is classifiable under· 
. 
. 
A 
B 
· Heading 25. 03 on basis of its manufacturingpiocess, purpose c 
for which it is used as also technicalinaterial produce.before 
it - Brimstone 90 means crude ·sulphur and is used for. 
agricultural purposes - Entry 
25.03 cdvers refined but also 
unrefined Sulphur, U$ed for different purposes including 
. agricultural purposes.~ While Sulphur in tariff entry No:3808 0 
~ · 
is used for insecticides, fungicides, herbicides etc. - It is to be · 
put i.Jp ir; forms or packings for retail sale or as pr&parations of 
attic/es for example sulphurtreated bands etc. which is different 
from crude Sulphur or Brimstone 90 - On facts, finding of the 
tribunal that 'Brimstone 90' was marketed.by importerin retail · 
bags may not be correct -
Thus, order of tribunal that E 
'Brimstone 90' was classifiable· under heading 38. OS not 
sustainable and set aside. 
Interpretation of statutes ....: Fiscal statute - Interpretation 
· of Chapter Note - Held: Depends upon the context iri which 
F 
entries have been worded - If its clearly worded and)s of broad · 
nature, it would lead to the conclusion that the context otherv11ise 
required - Entry is to be given its ordinary meaning ..;_, If any 
goods fit within one entry,· the same for any purpose would not. 
be held to be included in the other and in particular the G 
residuary. 
J 
By a Notification No.21\02-Cus.,dated 1st March, 
2002 benefit of exemption was granted in respect of 'crude 
or unrefined Sulpl'"Jr' falling under Heading 25.03. The 
1.139 
H 
1140 
SUPREME COURT REPORTS 
[2008] 7 S.C.R. 
A tribunal in Deepak Fertilisers & Petrochemicals Corporation 
Ltd. 's case held that the. "Brimstone 90" was classified 
under the Customs Tariff Heading 25.03. 
· The app~llant-importer of 200 MT of "Brimstone 90" 
B filed the bills of entry classifying the goods unde.r 
"Heading 25.03" of the Customs Tariff. However, the 
_. 
Deputy Commissioner of Customs held that the goods 
were classifiable under "Heading 38.08"of the Customs 
Tariff. The benefit of the Notification was not given to the 
c 
appellant. Appellant filed appeal which was allowed. 
Aggrieved, respondent, filed appeal. The Division Bench 
of the tribunal holding that the decision in Deepak 
Fertilisers's case was not correct, referred the matter to 
the larger bench. The Larger Bench held that the said 
goods were classifiable under Heading 3808.19. Hence 
D .the present appeal. 
4, 
Appellant contended that the Larger Bench of the 
Tribunal in arriving at the impugned judgment failed and/or 
neglected to consider not only the manufacturing process 
E of "Brimstone 90" and the purpose for which the same is 
used but also the technical materials produced before it. 
Allowing the appeal, the Court 
HELD: 1.1 Entry 2503 speaks of Sulphur of all kinds 
F 
other than sublimed sulphur, precipitated sulphur and 
colloidal sulphur. Therefore, it is evident that the said entry 
is of broad nature. Indisputably the product does not 
come within the purview of the excluded category. It is 
well settled what is not excluded would be held to be 
included. Within the category of Sulphur, Sulphur 
G recovered as by-product in the process of refinement of 
. crude oil also finds place. (Para 12, 15 and 16) [1147-H, 
1148-D,E,F] 
~ 
1.2 Chapter Note 1 of Chapter 25 starts with the words 
H "except where their ~ontext of Note 4 to this Chapter 
-· ,.., 
-·~-
... ·' 
MIS. DEEPAK AGRO SOLUTION LTD.· v. COMMNR. 
1141 
OF CUSTOMS, MAHARASHTRA 
otherwise requires''. Therefore; it is difficult to hold that A 
the headings of the Chapter would cover only the 
. products which are in the crude state or comes within 
the purview of other activities contained therein, 
Interpretation of the Note will depend upon the context in 
.~ 
which the entries have been worded. If an entry is clearly B 
worded and is broad in character, the same would lead to. 
the conclusion that the context otherwise required. An 
entry is to be given its ordinary meaning. If any goods fit 
. in within one entry, the same for any purpose would not. 
be held to be included in the other and in particular the c 
residuary. (Para 17, 18) [1148-F,G, 1149-A,B] 
1.
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