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

ABCDEFGH152SUPREME COURT REPORTS[2022] 17 S.C.R.wild pomegranate, which grows in mid hill conditions and whichfruit in its fresh form is different from the pomegranate included inclause 7 to Heading 08.10, as this wild pomegranate is not consumedas 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, orthere is ambiguity as to its meaning, it must be interpreted for thepurpose of classification in the popular sense, which is the senseattributed to it by those people who are conversant with the subjectmatter that the statute is dealing with – It is an extension of thegeneral principle of interpretation of statutes for deciphering themind of the law-maker – However, the above rule is subject to certainexceptions, for example, when there is an artificial definition orspecial meaning attached to the word in a statute, then the ordinarysense approach would not be applicable. Words and Phrases – Meaning of the word ‘edible’ – Derivedfrom the latin word ‘edibilis’ which means eatable - must be construedusing the principle of common parlance testWords and Phrases – Meaning of the word ‘seed’ – In commonparlance and in commercial sense means the grains or ripenedovules of plants using for sowing- ‘anardana’ is prepared bydehydrating the arils of wild pomegranates and not from thepomegranate which is eaten as a fresh fruit. Dismissing the appeals, the CourtHELD: 1.

The word ‘seed’ in common parlance and incommercial sense means the grains or ripened ovules of plantsused for sowing. The normal function of a seed is to germinateand produce a new plant. Broadly, a seed includes a propagativestructure such as a spore, or a small dry fruit. Some fruit andvegetable seeds are edible and are used by human beings asfood or even as condiments.[Para 24][170-D-E]1.

The Court observed that once the finding of factrecorded by the CESTAT is accepted that ‘anardana’ is a driedproduct of local ‘daru’ or wild pomegranate, which grows in midhill conditions and which fruit in its fresh form is different from ABCDEFGH153the pomegranate included in clause 7 to Heading 08.10, as thiswild pomegranate is not consumed as a fresh fruit, the contentionof the Revenue must fail. The contention of the Revenue thatthe Import Policy is in the nature of delegated legislation albeitcorrect, would not make any difference in the context of thepresent case as the policy condition in the Export/Import Policyspecifically includes pomegranate seeds – as ‘anardana’ undersub-heading 1209.99.00, whereas the Schedule to the CustomsTariff Act, 1975 merely reproduces the Heading and the sub-heading of the HSN, without specifically including or excludingpomegranate seeds under the sub-heading 1209.99. [Para25][170-F-G; 171-B-D]1.

The submission of the Respondent is correct that whenthe Revenue challenges the classification made by the assessees, the onus is on the Revenue to establish that the item in questionfalls intaxing category as claimed by them. The burden is on the Revenue to adduce proper evidence to show that the goods areclassifiable under a different heading than that claimed by theassessee. The finding of fact as recorded by CESTAT getsreinforced by the policy condition attached to the sub-heading1209.99.00 of the Import Policy which specifically states - ‘importof pomegranate seeds will be free’. Without any doubt, sub-heading1209.99.00 in the Import Policy correlates to sub-heading 1209.99to Chapter 12 of the HSN. [Para 25][170-H; 171-A-B]1.

As a postscript, it is also worth mentioning thatpomegranate seeds are one of the items notified and recognisedas a ‘spice’ under the schedule of the Spices Board Act, 1986.Section 2(n) of this Act states that a ‘spice’ means any of theitems specified in the schedule. [Para 27][171-F; 172-A]1.

The Revenue, it may be advisable, should take aconsidered policy decision after examining the data andascertaining the views of the trade associations on classificationof ‘anardana’ or by fixing a specific customs duty. Till the saidexercise is undertaken, the classification as determined by theCESTAT may be continued to avoid confusion and litigation. [Para27][172-C]COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR(PUNJAB) v. M/S D.L. STEELS ETC. ABCDEFGH154SUPREME COURT REPORTS[2022] 17 S.C.R.Dunlop India Ltd. v. Union of Indian and Ors. (1976) 2SCC 241 : [1976] 2 SCR 98, Commissioner of CentralExcise, New Delhi v. Connaught Plaza RestaurantPrivate Ltd., New Delhi (2012) 13 SCC 639 : [2012] 11SCR 365, Collector of Central Excise, Kanpur v.Krishna Carbon Paper Company, (1989) 1 SCC 150:[1988] 3 Suppl. SCR 12, HPL Chemicals Ltd. v.Commissioner of Central Excise, Chandigarh (2006) 5SCC 208 : [2006] 1 Suppl.

First appeals preferred by the respondents were allowed bythe Commissioner (Appeals), Central Excise, Jalandhar, on the groundthat the goods were the dried form of a type of pomegranate which, when fresh, is not consumed as a fruit. Accordingly, Heading 0810, whichapplies to the type of pomegranate which is consumed as a fruit, wouldhave no relevance to the type of pomegranate from which the goodsareobtained. Additionally, it was observed that the respondents’ contentionwould also prevailin light ofthe policy condition attached to sub-heading1209.99.90 of the Indian Export/Import Policy,6 which specifically states– “import of pomegranate seeds will be free”.77. Aggrieved, the Revenue preferred appeals before the Customs, Excise and Service Tax Appellate Tribunal,8 which, in the case of therespondent, was dismissed vide order dated 18th July 2008 inter aliaciting the certificate of Dr. Y.S. Parmar University of Horticulture and Forestry, Solan, to hold that the goods do not fall under the ambit of Heading 0813. The CESTAT observed that words in a taxing statutemust be construed in the same senseas understood in common or tradeparlance, and the Revenue had failed to lead any evidence to supportitscontention thatin trade parlance, the goods are understood as dried fruits.6 "Import Policy”, for short.7 The word “free” here denotes that the import of pomegranate seeds is not subject tolicencingrestrictions. It does not imply that custom duty is not payable. Reference tothe sub-heading is relevant.8 "CESTAT”, for short. ABCDEFGH157Reference was made to the observation in the Import Policy which hadclassified the goods under the sub-heading 1209.99.90. Adverting to the Explanatory Notes to the Heading 1209, it was held that as the goods didnot 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. Accordingly, sub-heading 0813.40.90 was not applicable, and the appeal wasdismissed.

Similar orders were passed by the CESTAT in the cases ofother respondents as well. Resultantly, the Revenue is in appeal beforeus.

The Harmonised System of Nomenclature,9 developed by the World Customs Organisation, has been adopted in India by way of the Customs Tariff Act, 1975, though there are certain entries in the Schedulesto this Act which have not been assigned HSN codes. The HarmonisedSystem is governed by the International Convention on HarmonisedCommodity Description and Coding System, which was adopted in1983, and enforced in January, 1988. This multipurpose internationalproduct nomenclature harmonises description, classification, and codingof goods. While the primary objective of the HSN is to facilitate and aidtrade, the Code is also extensively used by governments, internationalorganisations, and the private sector for other diverse purposes likeinternal taxes, monitoring import tariffs, quota controls, rules of origin, transport statistics, freight tariffs, compilation of national accounts, andeconomic research and analysis. In the present times, given thewidespread adoption of the Harmonised System by over 200 countries, it would be extremely difficult to deal with an international trade issueinvolving commodities, without adverting to the Harmonised System. The Code is the bedrock of custom controls and procedures. The HSNconsists of over 5000 commodities groups, which are structured into 21Sections and 97 Chapters, which are further divided into four and sixdigit sub-headings. Many custom administrations, like India, use an eightor more digit commodity coding system, with the first six digits being theHSN code.

Classification under the Harmonised System is done by placingthe good under the most apt and fitting sub-heading. This is done bychoosing the appropriate Chapter, Heading, and sub-heading respectively. To facilitate interpretation and classification, each of the 97 Chapters in9 "Harmonised System” /” HSN” / “the Code”, for short.COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR(PUNJAB) v. M/S D.L. STEELS ETC. [SANJIV KHANNA, J.] ABCDEFGH158SUPREME COURT REPORTS[2022] 17 S.C.R.the HSN contain corresponding Chapter Notes, General Notes, and Explanatory Notes applicable to the Headings and sub-headings withinthat Chapter. In addition, there are six General Rules of Interpretation10applicable to the Harmonised System as a whole.

GRI 1 states that the titles of Sections, Chapters, and sub-Chapters are provided for ease of reference only. Therefore, they haveno legal bearing on classification. Classification is to beeffected: (a)according to the terms of the Headings and any relative Section or Chapter Notes; and, (b) provided the Headings or Chapter Notes do nototherwise require according to the provisions thereinafter contained, viz.,GRIs 2 to 6. Thus, it is clear from the above that: (i) the Headings, and,(ii) the relative Section or Chapter Notes must be considered beforeclassification is done. Only after this exercise is done, if a conflict inclassification still persists, the subsequent GRIs are to be resorted to.GRI 2 is not germaneto the present case and therefore, we make noreference to it.GRI 3 provides for classification in the event when thegoods are classifiable under two or more Headings. As per GRI 3, whenby application of GRI 2(b) or for any other reason, the goods are, primafacie, classifiable under more than one Heading, then; (a) the ‘mostspecific description’ is preferred,(b) a mixture of different goods will beclassified as that good which gives the mixture its ‘essentialcharacteristic’, and (c) when goods cannot be classified with referenceto (a) or (b), they should be classified under the Heading which occurslast in the numerical order.11 The order of priority therefore is; (a) specific10 "GRI”, for short.

We would, at this stage, take on record the well-settled principlethat words in a taxing statute must be construed in consonance withtheir commonly accepted meaning in the trade and their popularmeaning.12 When a word is not explicitly defined, or there is ambiguityas to its meaning, it must be interpreted for the purpose of classificationin the popular sense, which is the sense attributed to it by those peoplewho are conversant with the subject matter that the statute is dealingwith. This principle should commend to the authorities as it is a goodfiscal policy not to put people in doubt or quandary about their tax liability. The common parlance test is an extension of the general principle ofinterpretation 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 theword in a statute, then the ordinary sense approach would not beapplicable.13mixed or composite goods or to part only of the items in a set put up for retailsale, those headings are to be regarded as equally specific in relation to thosegoods, even if one of them gives a more complete or precise description of thegoods.

Though not cited or relied upon by either party, forcompleteness, we would like to reproducethe relevant Headings of Chapter 9 and the General and Explanatory Notes applicable: “Chapter 9: Coffee, Tea, Mate and SpicesGeneral: This Chapter covers: (2) Spices, i.e., a group of vegetable products (including seeds, etc.), rich in essential oils and aromatic principles, and which, because of their characteristic taste, are mainly used ascondiments.xx xx xxThis Chapter further excludes: (a)-(c)(d) Certain fruits, seeds and parts of plants which, although theycan be used as spices, are more often employed in perfumery orin medicine (heading 12.11)(e.g., cassia pods, rosemary, wildmarjoram, basil, borage, hyssop, all species of mint, rue and sage).xx xx xx09.09 - Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries.0909.10 – Seeds of anise or badian0909.20 – Seeds of coriander0909.30 – Seeds of cumin0909.40 – Seeds of caraway0909.50 – Seeds of fennel; juniper berriesThese fruits or seeds are used for consumption as spices, forindustrial purposes (e.g., in distilleries) and for medicinal purposes. They remain in this heading even when, in case of anise seeds inparticular, they are put up (e.g., in sachets) for making herbalinfusions or herbal “teas”.xx xx xx ABCDEFGH16509.10 – Ginger, saffron, turmeric (curcuma), thyme, bay leaves, curry and other spices.0910.10 – Ginger0910.20- Saffron0910.30 - Turmeric (curcuma)0910.40 - Thyme; bay leaves0910.50- Curry- Other spices:0910.91— Mixtures referred to in Note 1 (b) to this Chapter0910.99 — OtherThus, the seeds of anise, badian, fennel, coriander, cumin, andcaraway fall under the Heading 09.09. The Note is inclusive and statesthat these seeds may be used for consumption as spices, for industrialpurposes and for medicinal purposes. However, what is of relevance isthe General Note 2 which refers to a group of vegetable products includingseeds etc. rich in essential oils and aromatic principles, or which onaccount of their characteristictaste are mainly used as condiments. However, the Chapter excludes certain fruits, seeds, and parts of plantswhich although used as spices are more often employed in perfumery orin medicine and are classified under heading 12.11.

The first Chapter Note to Chapter 8 stipulatesthat inediblenuts and fruits are not covered by the Chapter. Clearly, for the purposeof classification, this Note draws a distinction between ‘edible’ and‘inedible’ fruits. Etymologically, the word ‘edible’ derives from the Latinword ‘edibilis’ which means ‘eatable’.The word ‘edible’ as per Webster’sNew International Dictionary means “fit to be eaten as food; eatable; esculent.” The Concise Oxford English Dictionary defines edible as“fit to be eaten”.The phrase ‘fit to be eaten’can implyan absence ofharmful effects. However, whilethe word ‘edible’ seems simple, itwarrants elaboration as over-simplification will be problematic. BenBaumgartner, in his article,14 has referred to several judgments of differentcourts inthe United States of America to argue that the decisions haveculminated in the various tests and parameters to determine the meaningof the word ‘edible’.These are extracted below:14 Ben Baumgartner.

The contention of the appellant is that the goods are coveredby sub-heading 081340.90. As mentioned in the title of the Heading itself, the Heading does not include fruits which, when fresh, are covered under ABCDEFGH167Headings 08.01 to 08.06. If the dried fruits are relatable to the freshfruits classified under the Headings 08.07 to 08.10, they would fall in thecategory of ‘other fruits’ in 0813.40. The dried fruits, for the purpose ofthis Heading, may be prepared either by drying directly in the Sun or byindustrial process like tunnel drying. The last portion of the ExplanatoryNote to Heading 08.13 states that products consisting of mixtures of oneor more of the dried fruits of this Heading with plants or parts of plantsof other Chapters or with other substances, such as one or more plantextracts, are excluded. Reference is made to Heading 21.06 in this regard. This Note, however, is not applicable to the goods in question, as theyare not mixed with other plants or parts of plants.

It is also required to be noted that the Explanatory Note to Heading 08.10 states that the Heading covers all edible fruits not fallingin any preceding Heading of the Chapter, nor included in other Chapters. Any fruit included in any other Chapter, is not to be included under thesub-heading 08.10. Reference in this regard can also be made to theexclusion in the General Note to this Chapter. The General ExplanatoryNotes exclude a number of vegetable and other products, even thoughbotanically they are fruits, as they are covered more specifically in otherChapters. Reference by way of example is made to fruits that areprimarily used in pharmacy or perfumery, locust beans, kernels of apricotsor of similar fruit contained in Chapter 12. The Chapter Note also excludesfrom Chapter 8, the products of Chapter 9.

In favour of the appellant’s claim, it must be highlighted thatpomegranates, along with some other fruits, are expresslyincludedinclause7 to the Explanatory Notes to sub-heading 0810.90. Consequently, it canbe argued with some merit that dried pomegranate, if prepared by dryingin the Sun or by industrial processes, would fall under sub-heading0813.40.

However, pomegranatesare rather unusual fruits and theirstructure is unlike other fruits. The outer most layer is a hard and inedibleshell. The edible part consists ofthe seeds and arils. Arils are the sweet, juicy, and crunchy covering that encase the seeds. However, the findingof the CESTAT is that wild pomegranates from which ‘anardana’ ismade are different from the pomegranate fruit. This finding of fact issupported by considerable literature which states that ‘anardana’ isprepared by dehydrating the arils of wild pomegranates, and not fromCOMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR(PUNJAB) v. M/S D.L. STEELS ETC. [SANJIV KHANNA, J.] ABCDEFGH168SUPREME COURT REPORTS[2022] 17 S.C.R.the pomegranate which is eaten as a fresh fruit.15 The conventionalutilization of the wild pomegranate fruit lies in drying the seeds alongwith pulp to make‘anardana’. The wild pomegranate fruit is widelyfound on the hilly slopes of the Himalayas. It contains high acid contentalong with other quality characteristics, which distinguishes it from thepomegranate fruit which is consumed as a fresh fruit. The dried wildpomegranate arils have a distinct tart and sour flavour, owing to the highacid content, which gives it the commercial value. ‘Anardana’, therefore, can be defined as Sun-dried seeds of ripe sour pomegranate, and ispredominantly used as an acidulant in Indian and Persiancuisines, andfor its health benefits in the Ayurvedic system of medicine.

The respondents, in support of their contention, have reliedupon a certificate issued by Dr.Y.S. Parmar University of Horticultureand Forestry, Solan, which has been relied upon by the CESTAT andreads: “To Whom It May ConcernThis is to certify that Anaradana is dried product of local Daruwhich grows in wild form in mid hill conditions. The fruits of Daruare harvested in the month of July/August and seeds afterextraction are dried which is known as Anardana. Whereas, Anar15 Refer to: J. S. Pruthi and A. K. Saxena. “Studies on Anardana”.Journal of FoodScience and Technology, September/October, 1984: vol. 21, and specific reference maybe made to the first paragraph which reads

Dried, sour, whole pomegranate (Punicagranatum L) seeds popularly known as Anardana, is used as an acidulant in Indiancurries, chutneys, etc. in place of tamarind and amchur (dried raw mango) in NorthIndia. It is also used in Ayurvedic system of medicine

.The research paper by Amit Prashar, S. K. Gupta and Ashok Kumar. “Studies onseparation techniques of pomegranate seeds and their effect on quality of Anardana”.African Journal of Biochemistry Research, October, 2009: vol.3(10) states “thedehydrated seeds of wild pomegranate fruits (Anardana) are used as acidulent in culinarypreparations and in making various medicines”.Abhimanyu Thakur, N. S. Thakur, Hamid, Pradeep Kumar and Sunakshi Gautam. “Studies on Storage Quality Evaluation of Dried Wild Pomegranate Arils (Anardana)Prepared in Mechanical Cabinet Drier”. International Research Journal of Pure &Applied Chemistry, August, 2020: vol.21(11), the relevant portion of which reads

thefruit (wild pomegranate) being highly acidic in nature is being processed into its driedproduct known as anardana. Dried wild pomegranate arils with distinct sour or tartflavour are commercially available in many West and East Asian countries. Anardanaisa good source of organic acids, sugars, vitamin C, phenols, flavonoids and have beenused in formulations of various ayurvedic medicines which are helpful in curing anumber of ailments

. ABCDEFGH169is used for fresh fruit purpose and its seeds are consumed as suchwhich has no suitability to Anardana. Anardana is sour in taste and is used in Ayurvedic Pharacies. However, the botanical name of Daru (Anardana) and Anar issome that is Punica granatum and Anardana is not a driedproduce”.

We will now proceedto examine Heading 12.09, and inparticular, sub-heading 1209.99, along with the applicable Notes. ChapterNote 3 of Chapter 12 states that for the purpose of Heading 12.09, theseeds specified therein, which include seeds of fruit trees, are to beregarded as ‘seeds of a kind use of sowing’. Chapter Note 3, therefore, creates a fiction when it stipulates that for the purpose of Heading 12.09,seeds of fruit trees would be considered ‘seeds of a kind used for sowing’.The Note, however, expressly excludesthe goods specified in clauses(a) to (d), even when they are for the purpose of sowing. Clause (b)excludes spices and other products of Chapter 9 from the purview of Heading 12.09.Further, the Explanatory Notes to sub-heading 1209.99,also explicitly exclude fruits of Chapter 8, which Chapter subject to theexclusions and the principles of interpretation that apply to resolve conflictof classification of entries, applies to ‘edible fruits’ and not ‘inediblefruits’.

We will now examine the Explanatory Notes to Heading 12.09.The first paragraph of the Explanatory Notes to Heading 12.09 statesthatthe Heading covers all seeds, fruits and sporesof a kind usedfor sowing. It includes such products even if they are no longer capable ofgermination. This statement has to be read in conjunction with ChapterNote 3, which states that for the purpose of Heading 12.09, seeds offruit trees are to be regarded as seeds of a kind used for sowing. However, the paragraph does not apply to the products which are mentioned at theend of the Explanatory Note even when the seeds mentioned thereinare used for sowing as they were classified elsewhere in thenomenclature. The exclusion vide clauses(a) to (h)confirms and validatesthe first paragraph of the Explanatory Notes to the Heading 12.09. Thesecond paragraph of the Explanatory Notes, in addition to the seeds alreadyexcluded by Chapter Note 3, also excludes the seeds and fruits whichare primarily used in perfumery, pharmacy or for insecticidal, fungicidalor similar purposes, as they are covered under Heading 12.11. This isreiterated by clause (g) of the Explanatory Notewhich states that seedsCOMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR(PUNJAB) v. M/S D.L. STEELS ETC. [SANJIV KHANNA, J.] ABCDEFGH170SUPREME COURT REPORTS[2022] 17 S.C.R.and fruits, which are themselves of a kind primarily used in perfumery, pharmacy or for insecticidal, fungicidal or similar purposes would becovered under the Heading 12.11.

Heading 12.11 states that the plants and parts of plants includingseeds and fruits, of the kind used primarily in perfumery, pharmacy orfor insecticidal, fungicidal or similar purposes, fresh or dried, whether ornot cut, crushed or powdered would be covered by the said Heading. We need not refer to this Heading in detail, except noticing the details ofthe products included in the said heading, which include seeds as in thecase of Ambrette, Angelica, Burdock, etc., among others. Afterenumerating the list, the Explanatory Notes state that the list is notexhausted and is given to assist in the identification of the plants. Mentionof botanical names of a particular species does not necessarily indicatethat other species of the same plant family are not classified in the Heading. It is further stated that products of this Heading which areregarded as narcotic drugs under international instruments, are indicatedin the list at end of Chapter 29.

The word ‘seed’ in common parlance and in commercial sensemeans the grains or ripened ovules of plants used for sowing. The normalfunction of a seed is to germinate and produce a new plant. Broadly, aseed includes a propagative structure such as a spore, or a small dryfruit. Some fruit and vegetable seeds are edible and are used by humanbeings as food or even as condiments. However, as explained above, asper the Chapter Note 3 “seeds of forest trees, seeds of fruit trees…….areto be regarded as seeds of a kind used for sowing”.

In the context of the present case, once we accept the findingof fact recorded by the CESTAT that ‘anardana’ is a dried product oflocal ‘daru’ or wild pomegranate, which grows in mid hill conditions andwhich fruit in its fresh form is different from the pomegranate includedin clause 7 to Heading 08.10, as this wild pomegranate is not consumedas a fresh fruit, the contention ofthe Revenue must fail. GRI 3,which inthe absence of the Heading, Section or Chapter Notes, prescribes theorder of priority as - (a) specific description, (b) essential character, and(c) the Heading that occurs last in numerical order, and even GRI 4 –the heading appropriate for the goods “to which they are most akin”,supports our conclusion and finding. The submission of the learned counselfor the Respondent is correct that when the Revenue challenges theclassification made by the assessees, the onus is on the Revenue to ABCDEFGH171establish that the item in question falls in taxing category as claimed bythem.16 The burden is on the Revenue to adduce proper evidence toshow that the goods are classifiable under a different heading than thatclaimed by the assessee. The finding of fact as recorded by CESTATgets reinforced by the policy condition attached to the sub-heading1209.99.00 of the Import Policy which specifically states - ‘import ofpomegranate seeds will be free’. Without any doubt, sub-heading1209.99.00 in the Import Policy correlates to sub-heading 1209.99 to Chapter 12 of the HSN. The contention of the Revenue that the ImportPolicy is in the nature of delegated legislation albeit correct, would notmake any difference in the context of the present case as the policycondition in the Export/Import Policy specifically includes pomegranateseeds – as ‘anardana’ under sub-heading 1209.99.00, whereas the Schedule to the Customs Tariff Act, 1975 merely reproduces the Headingand the sub-heading of the HSN, without specifically including orexcluding pomegranate seeds under the sub-heading 1209.99.

For the reasons stated above, the appeals by the Revenuemust fail and are liable to be dismissed. However, before parting, wemust advert to the reason why we have referred to and reproducedHeading 12.11 and Heading 09.10 under Chapter 9. There are also severalsources which suggests that ‘anardana’ is primarily used as condimentand in pharmacy for preparation of Ayurvedic medicines.17 However, we would not express any final opinion in this regard as the Revenuehas not relied upon said headings and the show-cause notice whichresulted in the adjudication orders and the appellate orders was restrictedand confined to claim that the goods would be covered under the sub-heading 0813.40.90.

As a postscript, it is also worth mentioning that pomegranateseeds are one of the items notified and recognised as a‘spice’under theschedule of the Spices Board Act, 1986. Section 2(n) of this Act states16 SeeHPL Chemicals Ltd. v. Commissioner of Central Excise, Chandigarh (2006) 5SCC 208, ParleAgroPvt. Ltd. v. Commissioner of Commercial Taxes, Trivandrum(2017) 7 SCC 540, Union of India &Ors. v. Garware Nylons Ltd. &Ors. (1996) 10 SCC413.17 The main application of ‘Anardana’ as per the Council of Scientific & IndustrialResearch, Ministry of Science & Technology, Government of India is in “food acidulent, digestive candies, traditional system of medicine”. Further, the Spices Board of India, Ministry of Commerce and Industry, Government of India states that “the (pomegranate)seed dried with pulp is used as a spice in many dishes”.Refer also to supra footnote 15.COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR(PUNJAB) v. M/S D.L. STEELS ETC. [SANJIV KHANNA, J.] ABCDEFGH172SUPREME COURT REPORTS[2022] 17 S.C.R.that a‘spice’ means any of the items specified in the schedule. Furthermore, the data available on the export of ‘anardana’ from India paints a verydifferent picture and contradicts the contention of the Revenue. As perthe data available,18 most of the ‘anardana’that is exported from India, is exported under the sub-heading 0910.99.90 as ‘other spices’ or underthe sub-heading 3004.90.11 as ‘medicaments of Ayurvedic system’. Whilewe express no opinion in this regard, it is surprising that, for the import ofthe very same goods, the Revenue seek classification under Heading0813. We are conscious that the above observations may lead to anotherround of litigation. The Revenue, it may be advisable, should take aconsidered policy decision after examining the data and ascertaining theviews of the trade associations on classification of ‘anardana’ or byfixing a specific customs duty. Till the said exercise is undertaken, theclassification as determined by the CESTAT may be continued to avoidconfusion and litigation.