M/S. O.K. PLAY (INDIA) LTD. versus COMMISSIONER OF CENTRAL EXCISE, DELHI-III, GURGAON

Citation: [2005] 1 S.C.R. 1069 · Decided: 03-02-2005 · Supreme Court of India · Bench: S.N. VARIAVA · Disposal: Dismissed

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

Judgment (excerpt)

\ . 
MIS. O.K. PLAY (INDIA) LTD. 
A 
V. 
COMMISSIONER OF CENTRAL EXCISE, DELHI-III, GURGAON 
FEBRUARY 3, 2005 
[S.N. VARIA VA, DR. AR. LAKSHMANAN AND S.H. KAPADIA, JJ.] 
B 
Central Excise Tariff Act, 1985 : 
Excise goods--Classificalion of-Tests to determine-Discussed 
Tariff Heading 94.01 and 94.03-Play table, tables, activity desks and 
chairs-Classification of-Held: Even though 'toys' are meant for exclusive 
c 
use of children it cannot be placed in the category of 'toys '-HSN heading 
and explanatory notes thereto shows that 'toys' are miniature reproduction of 
articles used by adults like furniture, musical instruments-Hence, classifiable D 
as furniture' under Tariff Heading 94.01194.03. 
Tariff Heading 95.03-Swings, Slides, Fun Fliers and Rockers-
Classification of-Held : Reduced size models of slides, swings, fun fliers and 
rockers is used in playground and not for general physical exercise-Hence, 
classifiable as toys- under Tariff Heading 95. 03. 
E 
Tariff Heading 39.22-P/ay Pool-Classification of-Held: Play Pool is 
classifiable as 'Baths' under heading 39.22 since it is of 5 ft. diameter, 2.5 ft. 
deep with capacity of I 000 to I 500 litres-Also it is fully covered by explanatory 
notes to HSN heading 39.22. 
F 
Central Excise Act, 1944-Section I IA(/) provis<>-Extended period of 
limitation-Invocation of-Approval of classification lists of certain products 
filed by assessee and ·goods cleared without payment of duty-Thereafter, 
Department invoking extended period of limitation alleging mis-declaration in 
the classification lists regarding nomenclature of products by assessee-Held 
: Department duly approved classification lists from time to time, knew all G 
facts, its officers had been visiting assessee 's factory on several occasions and 
also was not prevented from calling the assessee to produce their product 
catalogues-Hence, no wilful suppression of facts to invoke extended period 
of limitation. 
1069 
H 
1070 
SUPREME COURT REPORTS 
[2005] 1 S.C.R. 
A 
Appellant - manufacturer of toys classified Activity Desks and 
Chairs, Fun Fliers, Play Table, Play Pool, Rockers, Slides and Swings as 
toys under Chapter Heading 95.03 of the Ce11tral Excise Tariff Act, 1985 
by prefixing and suffixing words 'baby' and 'toys' respectively to each of 
the items and cleared the same without payment of duty. Respondent -
Department approved the list without enquiring about the description of 
B the products in the catalogue. It also visited the factory premises of assessee 
number of times. Thereafter, respondent issued show cause notice to the 
appellant demanding duty invoking proviso to section llA(l) of Central 
Excise Act, 1944 on the ground that the words 'baby' and 'toy' were 
prefixed and suffixed to each of the items in the classification list to mislead 
C the Department to believe that the said product were toys whereas the 
product catalogue described the products as Rockers, Slides, Swings etc. 
It classified Play Table, Activity Desks and Chairs under Headings 94.01, 
94.03; Fun Fliers, Rockers, Slides and Swings under Headings 95.06; and 
Play Pool under Heading 39.22 and as such chargeable to duty. Tribunal 
upheld the classification done by the Department with regard to play 
D tables, tables, activity desk and chairs under Headings 94.01 and 94.03. 
E 
However, it classified swings, slides, fun fliers and rockers under Tariff 
Heading 95.03 and play pool under heading 39.26. It also held that the 
Department was not entitled to invoke larger period of limitation. Hence 
the present appeals. 
Appellant-assessee contended that 'Activity Desks and Chairs' were 
specifically designed for amusement of small children which were bought 
and sold in the market as toys and were exclusively available in toy shops 
and not in furniture shops and as such classifiable under Tariff Heading 
95.03 as toys; and that Note-1 under Chapter 94 shows that it does not 
F cover the toy furniture. 
Respondent - Department contended that the mere fact that baby 
chairs, desks and tables were used predominantly by children to sit on 
and write would not place that article in the category of toys; that they 
were smaller versions of tables and chairs used by adults and as such 
G rightly classified as furniture under Headings 94.01 and 94.03; and that 
swings, slides, fun fliers and rockers are equipments under Headings 95.06 
for general exercise, gymnastics and athletics. 
Dismissing the appeals, the Court 
H 
HEL

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