TMI Blog2000 (7) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. 2. The issue involved in the present appeal is whether 'electric coil stoves' manufactured by M/s. Sunflame Industries should be treated as 'hot plates' or whether they remained exempt under the category of 'other domestic electrical appliances'. 3. The issue had come to the Tribunal on an appeal filed by the Commissioner of Central Excise, New Delhi against order-in-appeal No. 386-CE/DLH/93, dated 18-11-1993 of the Commissioner of Central Excise (Appeals), Delhi wherein the Commissioner held, after reversing the decision of the Assistant Collector that electric coil stove was eligible for assessment at nil rate of duty as 'other domestic electrical appliances'. The Division Bench of the Tribunal which heard the appeal has referred the case to this Larger Bench as they were of the opinion that electric coil stove is nothing but a hot plate and was, therefore, required to pay duty at 20% as applicable to hot plates; but, this opinion was in conflict with an earlier decision of the Tribunal in the case of Collector of Central Excise, Bangalore v. Supreme Electrical Industries, Bontex Electricals [1997 (23) E.L.T. 667 (CEGAT)] wherein the Tribunal held that electric coil stove ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding 'domestic electrical appliances, the following' related only to goods named therein. 'Other domestic electrical appliances' had to be treated as a different category and assessed at nil rate of duty under the entry applicable to them. He also contended that goods akin or similar to hot plates were not to be treated as hot plates as the entry read 'domestic electrical appliances, the following'. He contended that only the electrical appliances specifically mentioned under the heading would be covered by the entry 'the following' and not 'similar items'. This is clear from the fact that 'other domestic electrical appliances' are listed separately. 8.The learned Consultant also drew our attention to the observations of Commissioner (Appeals) in paras 6 and 7 of his order. The learned Consultant submitted that the Commissioner had, after seeing the samples and after perusing all the records, come to the conclusion that electric coil stoves cannot be classified under Sl. No. 5(a)(x) (hot plates etc.) and they will attract classification under Sl. No. 5(d) which is meant for 'other domestic electrical appliances' which is taxed at nil rate of duty. With regard to the submission th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion cannot be classified under Sl. No. 5(a)(x), it will attract classification under Sl. No. 5(d), which is meant for "other domestic electrical appliances" and which is taxed at nil rate." 11.The scheme of notification No. 160/86 is to tax different domestic electrical appliances at different rates. The items specifically mentioned under heading (a) 'domestic electrical appliances, the following' includes 'hot plates'. Electric coil stove is not one of the items listed under that heading. The electrical appliances not listed under the heading 'the following' cannot be taxed under that heading because the scheme of the notification is to tax at different rates domestic electrical appliances specifically named under heading (a) and 'other domestic electrical appliances' mentioned at (d); Domestic electrical appliances which are akin or similar to the items mentioned under the heading 'domestic electrical appliances, the following' cannot be brought under that heading as that heading covers only the items mentioned therein and not products which are alike, similar or akin. 12.The appeal itself admits that electric coil stove is a different product from hot plates when it states t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where that goods is known or traded. If special type of goods is subject matter of a fiscal entry then that entry must be understood in the context of that particular trade, bearing in mind that particular word. Where, however, there is no evidence either way then the definition given and the meaning following from particular statute at particular time would be the decisive test." 15. This issue had earlier been considered by the Supreme Court in the case of Commissioner of Sales Tax, U.P. v. M/s. S.N. Brothers, Kanpur [AIR 1973 Supreme Court 78] and held that entries should be construed in their own context and in the sense, as ordinarily understood and attributed to these words by people usually conversant with and dealing in such goods. With regard to the meaning to be given to the words 'food colours' and 'syrup essences', their Lordships observed that those words which are descriptive of the class of goods the sales of which are to be taxed under the Act have to be construed in the sense in which they are popularly understood by those who deal in them and who purchase and use them. It was also observed that dictionary cannot serve as a safe guide in construing the words use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificial silk" was considered by the High Court to be the ordinary and popular meaning of that expression. In Sarin Chemical Laboratory v. Commr. of Sales Tax, (1970) 26 STC 339 = (AIR 1971 SC 65) this Court held tooth powder to be a "toilet requisite" and liable to sales tax at a single point under S. 3A of the Act read with entry no. 6 of the notification, with which we are also concerned in the present case, it being observed that the names of the articles, sales and purchases of which are liable to be taxed, given in a statute, unless defined in the statute, must be construed not in a technical sense but as understood in comman parlance. In this decision reference was made to an earlier decision of this Court by five Judges in Ramvatar Budhiprasad v. Assistant Sales Tax Officer, Akola, (1961) 12 STC 286 = (AIR 1961 SC 1325) in which 'betel leaves' were not considered as 'vegetable'. In Commr. of Sales Tax, M.P., Indore v. Jaswant Singh Charan Singh, (1967) 19 STC 469 = (AIR 1967 SC 1454) the word "coal" was held by this Court to include "charcoal", it being observed that, while interpreting items in statutes like the Sales Tax Acts, resort should be had not to the scientific o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arly known in comman parlance by the names of "food colours" and "syrup essences". 7. It cannot be gainsaid that "food colours" and "syrup essences" are edible goods whereas "dyes and colours and compositions thereof" and "scents and perfumes" as specified in entries nos. 10 and 37 of the List do not seem prima facie to connote that they are edible goods. This is the reasoning of the High Court and it appears to us to be both logical and rational. Indeed, except for items. like 'salt' in entry No. 34, the "sugar manufactured by mills" (entry no. 40) and "Banaspati, including refined coconut oil" (entry No. 43) which is capable of being used as medium for cooking is prima facie edible there does not seem to be any other edible article included in the List. Item no. 25 speaks of "oils of all kinds other than edible oils manufactured on Ghanis by human or animal power". This scheme, suggests that, apart from the undoubted edible goods, in cases where the import of the specified goods is wide enough to include both edible and non-edible category then the intention has been clearly expressed whether or not to include edible goods. Now in the case of entries nos. 10 and 37 we are incli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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