Commr. of Cus., CE & ST v. Select Foam Products

CENTRAL EXCISE TARIFF ACT, 1985

--Classification of goods--Polyurethane FoamWhether products manufactured were classifiable under 9401 or under Chapter Heading 3926 30 10----Where article was a polyurethane article made specifically for fitting on furniture or coach seats, etc., and was not a seat in itself and this was a more specific description of the goods in question than a seat, therefore, the goods were correctly classifiable under 3926 30 10.--Assessee was engaged in manufacture of Polyurethane Foam and polyurethane products were manufactured by reacting two chemicals Polyol and Isocyanide. It was herein manufacturing polyurethane foam in the form of seat cushions by injecting these two chemicals into appropriate moulds. It classified these cushions meant for seats, as seats under Chapter Heading 9401. Revenue held that since assessee was not manufacturing seats but were only manufacturing articles of polyurethane foam which could not be used as seats unless they were fixed to the frame of the chairs/buses/car seats, and upholstered, their products were classifiable as articles of foam under Chapter Heading 3926 30 10. Held: Chapter Note 1(d) of chapter 94 excludes articles falling under Chapter 39 from this chapter. Similarly, Chapter Note 2(x) of Chapter 39 excludes articles falling under chapter 94. Thus, chapter notes mutually excluding each other did not help in determining the classification. Therefore, rule 3(a) of the general rules of interpretation must be applied to which is a more specific entry. The article is a polyurethane article made specifically for fitting on furniture or coach seats, etc., and is not a seat in itself. This was a more specific description of the goods in question than a seat. Therefore, the goods were correctly classifiable under 3926 30 10.