Holding

Anardana is a dried product of wild pomegranate and must be classified under heading 1209.99.90, not under heading 0813.40.90.

Summary

M/s D.L. Steels imported two consignments of dried pomegranate seeds (anardana) from Pakistan and classified them under heading 1209.99.90 of the Customs Tariff, attracting 5% duty. The Customs authorities re‑classified the goods under heading 0813.40.90, imposing a 30% duty, leading to differential duty, penalty and interest. The Revenue appealed the CESTAT decision that upheld the importer's classification, arguing that the goods are dried fruits and that the Import Policy is delegated legislation. The Supreme Court examined the meaning of "seed" and "edible" in common and trade parlance, the relevant chapter and heading notes, and the burden of proof on the Revenue. It held that anardana is a dried product of wild pomegranate, not a dried fruit, and therefore falls under heading 1209.99.90, with the Revenue failing to discharge its evidential burden. Consequently, the Revenue's appeal was dismissed.

Issues considered

The proper tariff classification of dried pomegranate seeds (anardana) – whether under heading 0813.40.90 (dried fruits) or heading 1209.99.90 (seeds, fruit and spores of a kind used for sowing).
Interpretation of the terms "seed" and "edible" in the Customs Tariff Act using the common/trade parlance test.
Whether the burden of proof lies on the Revenue to establish a classification different from that claimed by the importer.
The effect of the Import/Export Policy (as delegated legislation) on tariff classification.
Whether the goods could be classified under Chapter 9 (spices) or Chapter 12 (seeds) instead of Chapter 8.
Application of the General Rules of Interpretation (GRI) to resolve the classification conflict.

Legislation cited

Customs Act, 1962s. 112, s. 114-A, s. 28(2), s. 28AB
Customs Tariff Act, 1975
Spices Board Act, 1986s. 2(n)

Subjects

classificationcustoms tariffdry fruitseedcommon parlanceburden of proofimport policyharmonized systemanardanaspices

Judgment

[2022] 17 S.C.R. 151 151

COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, A
AMRITSAR (PUNJAB)
v.
M/S D.L. STEELS ETC.
(Civil Appeal Nos. 2360-2376 of 2009) B
JULY 11, 2022
[SANJIV KHANNA AND BELA M. TRIVEDI, JJ.]
Customs Tariff Act, 1975 – Dispute regarding classification
of dried pomegranate seeds/‘anardana’ in tariff entries under
C
Heading 0813 as claimed by the Customs Authorities or under
Heading 1209 as claimed by the Respondents/importers –
Respondents imported two consignments of ‘anardana’ from
Pakistan and they classified the goods under the tariff sub-heading
1209.99.90 which attracts basic custom duty at the rate of 5% plus
education cess at the rate of 2% – However, according to Customs D
Authorities the goods falls under sub- heading 0813.40.90 which
attracts basic customs duty at the rate of 30% plus education cess
at the rate of 2% – Adjudicating authority confirmed the differential
duty and imposed a personal penalty on the Respondent along with
interest – First appeal preferred by the Respondents were allowed
E
by the Commissioner (Appeals) opining that the Heading 0810
applies to the type of pomegranate which is consumed as a fruit
and on the other hand, goods/‘anardana’ were the dried form of a
type of pomegranate which, when fresh, is not consumed as a fruit,
therefore heading 0810 would have no relevance to the type of
pomegranate from which the goods are obtained – Aggrieved, the F
Revenue preferred appeals before the CESTAT – Appeal was
dismissed observing that in Explanatory Notes to the Heading 1209,
the goods did not 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 and therefore, sub-heading 0813.40.90 was
G
not applicable – Further, words in a taxing statute must be construed
in the same sense as understood in common or trade parlance, and
the Revenue had failed to lead any evidence to support its contention
that in trade parlance, the goods are understood as dried fruits –
On appeal, held: Once the finding of fact recorded by the CESTAT
is accepted that ‘anardana’ is a dried product of local ‘daru’ or H
151
152 SUPREME COURT REPORTS [2022] 17 S.C.R.

A wild pomegranate, which grows in mid hill conditions and which
fruit in its fresh form is different from the pomegranate included in
clause 7 to Heading 08.10, as this wild pomegranate is not consumed
as a fresh fruit, the contention of the Revenue must fail –
Classification arrived by CESTAT upheld.
B Interpretation of Statutes – Principle of Common Parlance/
Common Parlance test – When a word is not explicitly defined, or
there is ambiguity as to its meaning, it must be interpreted for the
purpose of classification in the popular sense, which is the sense
attributed to it by those people who are conversant with the subject
matter that the statute is dealing with – It is an extension of the
C general principle of interpretation 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 the word in a statute, then the ordinary
sense approach would not be applicable.
D Words and Phrases – Meaning of the word ‘edible’ – Derived
from the latin word ‘edibilis’ which means eatable - must be construed
using the principle of common parlance test
Words and Phrases – Meaning of the word ‘seed’ – In common
parlance and in commercial sense means the grains or ripened
E ovules of plants using for sowing- ‘anardana’ is prepared by
dehydrating the arils of wild pomegranates and not from the
pomegranate which is eaten as a fresh fruit.
Dismissing the appeals, the Court

F HELD: 1.1. The word ‘seed’ in common parlance and in
commercial sense means the grains or ripened ovules of plants
used for sowing. The normal function of a seed is to germinate
and produce a new plant. Broadly, a seed includes a propagative
structure such as a spore, or a small dry fruit. Some fruit and
vegetable seeds are edible and are used by human beings as
G food or even as condiments.[Para 24][170-D-E]
1.2.The Court observed that once the finding of fact
recorded by the CESTAT is accepted that ‘anardana’ is a dried
product of local ‘daru’ or wild pomegranate, which grows in mid
hill conditions and which fruit in its fresh form is different from
H
COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR 153
(PUNJAB) v. M/S D.L. STEELS ETC.

the pomegranate included in clause 7 to Heading 08.10, as this A
wild pomegranate is not consumed as a fresh fruit, the contention
of the Revenue must fail. The contention of the Revenue that
the Import Policy is in the nature of delegated legislation albeit
correct, would not make any difference in the context of the
present case as the policy condition in the Export/Import Policy
B
specifically includes pomegranate seeds – as ‘anardana’ under
sub-heading 1209.99.00, whereas the Schedule to the Customs
Tariff Act, 1975 merely reproduces the Heading and the sub-
heading of the HSN, without specifically including or excluding
pomegranate seeds under the sub-heading 1209.99. [Para
25][170-F-G; 171-B-D] C
1.3. The submission of the Respondent is correct that when
the Revenue challenges the classification made by the assessees,
the onus is on the Revenue to establish that the item in question
falls intaxing category as claimed by them.The burden is on the
Revenue to adduce proper evidence to show that the goods are D
classifiable under a different heading than that claimed by the
assessee. The finding of fact as recorded by CESTAT gets
reinforced by the policy condition attached to the sub-heading
1209.99.00 of the Import Policy which specifically states - ‘import
of pomegranate seeds will be free’. Without any doubt, sub-heading
1209.99.00 in the Import Policy correlates to sub-heading 1209.99 E
to Chapter 12 of the HSN. [Para 25][170-H; 171-A-B]
1.4. As a postscript, it is also worth mentioning that
pomegranate seeds are one of the items notified and recognised
as a ‘spice’ under the schedule of the Spices Board Act, 1986.
Section 2(n) of this Act states that a ‘spice’ means any of the F
items specified in the schedule. [Para 27][171-F; 172-A]
1.5. The Revenue, it may be advisable, should take a
considered policy decision after examining the data and
ascertaining the views of the trade associations on classification
of ‘anardana’ or by fixing a specific customs duty. Till the said G
exercise is undertaken, the classification as determined by the
CESTAT may be continued to avoid confusion and litigation. [Para
27][172-C]

H
154 SUPREME COURT REPORTS [2022] 17 S.C.R.

A Dunlop India Ltd. v. Union of Indian and Ors. (1976) 2
SCC 241 : [1976] 2 SCR 98, Commissioner of Central
Excise, New Delhi v. Connaught Plaza Restaurant
Private Ltd., New Delhi (2012) 13 SCC 639 : [2012] 11
SCR 365, Collector of Central Excise, Kanpur v.
B Krishna Carbon Paper Company, (1989) 1 SCC 150:
[1988] 3 Suppl. SCR 12, HPL Chemicals Ltd. v.
Commissioner of Central Excise, Chandigarh (2006) 5
SCC 208 : [2006] 1 Suppl. SCR 125, Parle Agro Pvt.
Ltd. v. Commissioner of Commercial Taxes, Trivandrum
C (2017) 7 SCC 540 : [2017] 5 SCR 30, Union of India
& Ors. v. Garware Nylons Ltd. & Ors. (1996) 10 SCC
413 : [1996]5 Suppl. SCR 629- referred to.
Ben Baumgartner. “Chewing it Over: Determining the
Meaning of Edible In the Harmonized Tariff Schedule
D of the United States”, Kansas Law Review, Kansas Law
Review Inc. November, 2015: vol. 64(1), J. S. Pruthi
and A. K. Saxena. “Studies on Anardana”, Journal of
Food Science and Technology, September/October,
1984 : vol. 21, Amit Prashar, S. K. Gupta and Ashok
E Kumar. “Studies on separation techniques of
pomegranate seeds and their effect on quality of
Anardana”, African Journal of Biochemistry Research,
October,, Abhimanyu Thakur, N. S. Thakur, Hamid,
Pradeep Kumar and Sunakshi Gautam. “Studies on
F 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) - referred
to.
G Case Law Reference
[1976] 2 SCR 98 referred to Para 12
[2012] 11 SCR 365 referred to Para 12
[1988] 3 Suppl. SCR 12 referred to Para 12
H
COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR 155
(PUNJAB) v. M/S D.L. STEELS ETC.

[2006] 1 Suppl. SCR 125 referred to Para 25 A
[2017] 5 SCR 30 referred to Para 25
[1996] 5 Suppl. SCR 629 referred to Para 25
CIVIL APPELLATE JURISDICTION : Civil Appeal Nos.2360-
2376 of 2009.
From the Judgment and Order dated 10.07.2008 of the Customs, B
Excise & Service Tax Appellate Tribunal, Principal Bench, New Delhi
in Customs Appeal No.287 to 297 & 341 to 346 of 2007.
Ms. Madhavi Goradia Divan, ASG, Mohammed Akhil, Ms. Nidhi
Khanna, Ms. Seema Bengani, Amith J., Mukesh Kumar Maroria, Advs.
for the Appellant. C
Rupesh Kumar, Ms. Pankhuri Shrivastava, Ms. Neelam Sharma,
Rajeev Sharma, Advs. for the Respondents.
The Judgment of the Court was delivered by
SANJIV KHANNA, J.
These appeals raise a common question –should dried pomegranate D
seeds, domestically known as ‘anardana’, be classified under Heading
0813 of the Tariff entries issued under the Customs Tariff Act, 1975,1 as
claimed bythe Commissioner of Customs, Amritsar,2 or under Heading
1209 as claimed by the importers?3
2. For brevity, we will only refer to the specific facts in the case E
ofM/s. D.L. Steels, wherein the respondent had imported two
consignments of ‘anardana’4 from Pakistan, vide Bills of Entry dated
15th December 2005 and 9th March 2006. For taxation they classified the
goodsunder the tariff sub-heading 1209.99.90, attracting basic custom
duty at the rate of 5% plus education cess at the rate of 2%. However,
F
the customs authorities contend that the goods must fall under sub-heading
0813.40.90, and accordingly, areliable for basic custom duty at the rate
of 30% plus education cess at the rate of 2%.
3. To this end, the Office of the Assistant Commissioner, Rail
Cargo, Amritsar,5 issued a show-cause notice dated 27th March 2006,
which inter alia stated that fresh pomegranate falls under the Heading G

1
"the Act”, for short.
2
"the appellant”/ “the Revenue”, for short.
3
"the respondent”/ “the other respondents”, for short.
4
Hereinafter referred to as “the goods”.
5
Hereinafter referred to as “adjudicating authority’”. H
156 SUPREME COURT REPORTS [2022] 17 S.C.R.

A 0810, and the goods, being nothing but the dried form of fresh pomegranate
fruit seeds, would fall under Heading 0813, an entry which covers the
dried form of all items falling under Headings 0807 to 0810. Consequently,
sub-heading 0813.40.90 would be applicable to the goods.
4. The goods were released provisionally by the customs
B authorities onthe execution of a bond. By assessment order dated 31st
May 2006, the adjudicating authority confirmed the differential duty of
Rs.82,136/- under Section 28(2) of the Customs Act, 1962, and imposed
a personal penalty of Rs.82,000/- under Section 114-A read with Section
112 of the Customs Acton the respondent. Levy of interest under Section
28AB was directed.
C
5. Similar orders based on identical grounds classifying the goods
under sub-heading 0813.40.90, imposing differential duty, interest, and
penalty were passed in the cases of the other respondents as well.
6. First appeals preferred by the respondents were allowed by
D the Commissioner (Appeals), Central Excise, Jalandhar,on the ground
that the goods were the dried form of a type of pomegranate which,
when fresh,is not consumed as a fruit. Accordingly, Heading 0810, which
applies to the type of pomegranate which is consumed as a fruit, would
have no relevance to the type of pomegranate from which the goodsare
obtained. Additionally, it was observed that the respondents’ contention
E would also prevailin light ofthe policy condition attached to sub-heading
1209.99.90 of the Indian Export/Import Policy,6 which specifically states
– “import of pomegranate seeds will be free”.7
7. Aggrieved, theRevenue preferred appeals before the Customs,
Excise and Service Tax Appellate Tribunal,8 which, in the case of the
F respondent, was dismissed vide order dated 18th July 2008 inter alia
citing 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 statute
must be construed in the same senseas understood in common or trade
parlance, and the Revenue had failed to lead any evidence to supportits
G
contention 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 to
licencingrestrictions. It does not imply that custom duty is not payable. Reference to
the sub-heading is relevant.
8
"CESTAT”, for short.
H
COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR 157
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Reference was made to the observation in the Import Policy which had A
classified 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 did
not 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 was
B
dismissed.
8. Similar orders were passed by the CESTAT in the cases of
other respondents as well. Resultantly, the Revenue is in appeal before
us.
9. The Harmonised System of Nomenclature,9 developed by the C
World Customs Organisation, has been adopted in India by way of the
Customs Tariff Act, 1975, though there are certain entries in the Schedules
to this Act which have not been assigned HSN codes.The Harmonised
System is governed by the International Convention on Harmonised
Commodity Description and Coding System, which was adopted in
1983, and enforced in January, 1988. This multipurpose international D
product nomenclature harmonises description, classification, and coding
of goods. While the primary objective of the HSN is to facilitate and aid
trade, the Code is also extensively used by governments, international
organisations, and the private sector for other diverse purposes like
internal taxes, monitoring import tariffs, quota controls, rules of origin, E
transport statistics, freight tariffs, compilation of national accounts, and
economic research and analysis. In the present times, given the
widespread adoption of the Harmonised System by over 200 countries,
it would be extremely difficult to deal with an international trade issue
involving commodities, without adverting to the Harmonised System.
The Code is the bedrock of custom controls and procedures.The HSN F
consists of over 5000 commodities groups, which are structured into 21
Sections and 97 Chapters, which are further divided into four and six
digit sub-headings. Many custom administrations, like India, use an eight
or more digit commodity coding system, with the first six digits being the
HSN code. G
10. Classification under the Harmonised System is done by placing
the good under the most apt and fitting sub-heading. This is done by
choosing the appropriate Chapter, Heading, and sub-heading respectively.
To facilitate interpretation and classification, each of the 97 Chapters in
9
"Harmonised System” /”HSN” / “the Code”, for short. H
158 SUPREME COURT REPORTS [2022] 17 S.C.R.

A the HSN contain corresponding Chapter Notes, General Notes, and
Explanatory Notes applicable to the Headings and sub-headings within
that Chapter. In addition, there are six General Rules of Interpretation10
applicable to the Harmonised System as a whole.
11. GRI 1 states that the titles of Sections, Chapters, and sub-
B Chapters are provided for ease of reference only. Therefore, they have
no 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 not
otherwise require according to the provisions thereinafter contained, viz.,
GRIs 2 to 6.Thus, it is clear from the above that: (i) the Headings, and,
C (ii) the relative Section or Chapter Notes must be considered before
classification is done. Only after this exercise is done, if a conflict in
classification still persists, the subsequent GRIs are to be resorted to.
GRI 2 is not germaneto the present case and therefore, we make no
reference to it.GRI 3 provides for classification in the event when the
goods are classifiable under two or more Headings. As per GRI 3, when
D by application of GRI 2(b) or for any other reason, the goods are, prima
facie, classifiable under more than one Heading, then; (a) the ‘most
specific description’ is preferred,(b) a mixture of different goods will be
classified as that good which gives the mixture its ‘essential
characteristic’, and (c) when goods cannot be classified with reference
to (a) or (b), they should be classified under the Heading which occurs
E
last in the numerical order.11 The order of priority therefore is; (a) specific
10
"GRI”, for short.The GRIs were incorporated in the First Schedule to the Customs
Tariff Act, 1975 vide the Customs Tariff (Amendment) Act, 2003.
11
The General Rules of Interpretation 1 and 3 are reproduced below without the
Explanatory Notes:
“1. The titles of Sections, Chapters and sub-chapters are provided for ease of
F reference only; for legal purposes, classification shall be determined according
to the terms of the headings and any relative Section or Chapter Notes and,
provided such headings or Notes do not otherwise require, according to the
following provisions:

xx xx xx
G
3. When by application of rule 2(b) or for any other reason, goods are, prima
facie, classifiable under two or more headings, classification shall be effected as
follows:
(a) The heading which provides the most specific description shall be preferred
to headings providing a more general description. However, when two or more
headings each refer to part only of the materials or substances contained in
H
COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR 159
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description, (b) essential character, and (c) the Heading which occurslast A
in numerical order. However, GRI 3 can only take effect provided the
terms of the Heading or Section or Chapter Notes do not otherwise
require.GRI 4 states that when the goods cannot be classified in
accordance with the aforementioned rules, they shall be classified under
the heading appropriate for the goods “to which they are most akin”.
GRI 5 applies exclusively to cases and packing material, and therefore,is B
not apropos. GRI 6 states that the classification of goods in the sub-
headings of a Heading shall be determined according to the terms of
those sub-headings and any related Notes, and mutatis mutandisto the
above GRIs, on the understanding that only sub-headings at the same
level are comparable.
C
12. We would, at this stage, take on record the well-settled principle
that words in a taxing statute must be construed in consonance with
their commonly accepted meaning in the trade and their popular
meaning.12 When a word is not explicitly defined, or there is ambiguity
as to its meaning, it must be interpreted for the purpose of classification
in the popular sense, which is the sense attributed to it by those people D
who are conversant with the subject matter that the statute is dealing
with. This principle should commend to the authorities as it is a good
fiscal policy not to put people in doubt or quandary about their tax liability.
The common parlance test is an extension of the general principle of
interpretation of statutes for deciphering the mind of the law-maker.
However, the above rule is subject to certain exceptions,for example, E
when there is an artificial definition or special meaning attached to the
word in a statute, then the ordinary sense approach would not be
applicable.13
mixed or composite goods or to part only of the items in a set put up for retail
sale, those headings are to be regarded as equally specific in relation to those
goods, even if one of them gives a more complete or precise description of the F
goods.
(b) Mixtures, composite goods consisting of different materials or made up of
different components, and goods put up in sets for retail sale, which cannot be
classified by reference to (a), shall be classified as if they consisted of the
material or component which gives them their essential character, in so far as
this criterion is applicable.
(c) When goods cannot be classified by reference to (a) or (b), they shall be G
classified under the heading which occurs last in numerical order among those
which equally merit consideration”.
12
See Dunlop India Ltd. v. Union of Indian and Ors. (1976) 2 SCC 241, and Commissioner
of Central Excise, New Delhi v. Connaught Plaza Restaurant Private Ltd., New Delhi
(2012) 13 SCC 639.
13
Collector of Central Excise, Kanpur v. Krishna Carbon Paper Company, (1989) 1
SCC 150. H
160 SUPREME COURT REPORTS [2022] 17 S.C.R.

A 13. The two contesting Headings along with the relevant General,
Chapter and Explanatory Notes are extracted below:
“Chapter 8: Edible Fruit and Nuts; Peel of Citrus Fruit or
Melons
Chapter Notes.
B
1.- This Chapter does not cover inedible nuts or fruits.
xx xx xx
General:
This Chapter covers fruit, nuts and peel of citrus fruit or melons
C (including watermelons),g enerally intended for human consumption
(whether as presented or after processing).
xx xx xx
08.10 – Other fruit, fresh.
081010 - Strawberries
D
081020 - Raspberries, blackberries, mulberries and loganberries
081030 - Black, white or red currants and gooseberries
081040 - Cranberries, bilberries and other fruits of the genus
Vaccinium
E
081050 - Kiwifruit
081060 - Durians
081090 - Other

F 0810.90 Other
This heading covers all edible fruits not falling in any preceding
heading of this Chapter nor included in other Chapters of the
Nomenclature (see the exclusions in the General Explanatory Note
to this Chapter).
G It therefore includes:
(1) – (6)
(7) Boysenberries, rowan berries, elderberries, sapodilla
(naseberries), pomegranates, cactus figs (prickly pears), rose hips,
persimmons (kakis), jujubes, medlars, longans, litchi, soursops,
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COMMISSIONER OF CUSTOMS AND CENTRAL EXCISE, AMRITSAR 161
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sweetsops and fruit of the species Asimina triloba also known as A
pawpaws.
xx xx xx
08.13 – Fruit, dried, other than that of headings 08.01 to 08.06;
mixtures of nuts or dried fruits of this Chapter.
0813.10 - Apricots B

0813.20 - Prunes
0813.30 - Apples
0813.40 - Other fruit
C
0813.50 – Mixtures of nuts or dried fruits of this Chapter
(A) Dried fruit.
This heading includes dried fruits which when fresh are classified
in headings 08.07 to 08.10. They are prepared either by direct
drying in the sun or by industrial processes (e.g., tunnel-drying). D
xx xx xx

However, the heading excludes such products consisting of a
mixture of one or more of the dried fruits of this heading with
plants or parts of plants of other Chapters or with other substances
such as one or more plant extracts (generally heading 21.06). E
xx xx xx
Chapter 12: Oil seeds and Oleaginous Fruits;
Miscellaneous Grains, Seeds and Fruit; Industrial or
Medicinal Plants; Straw and Fodder
F
Chapter notes.
(1.)-(2.)
3.- For the purposes of heading 12.09, beet seeds, grass and other
herbage seeds, seeds of ornamental flowers, vegetable seeds, seeds
of forest trees, seeds of fruit trees, seeds of vetches (other than G
those of the species Vicia faba) or of lupines are to be regarded
as “seeds of a kind used for sowing Heading 12.09 does not,
however, apply to the following even if for sowing :(a) Leguminous
vegetables or sweet corn (Chapter 7); (b) Spices or other products
of Chapter 9; (c) Cereals (Chapter 10); or(d) Products of headings
H
162 SUPREME COURT REPORTS [2022] 17 S.C.R.

A 12.01 to 12.07 or 12.11.
xx xx xx
12.09- Seeds, fruit and spores, of a kind used for sowing.
1209.10 Sugar beet seed
B -Seeds of forage plants:
1209.21 Lucerne (alfalfa) seed
1209.22 Clover (Trifolium spp.) seed
1209.23 Fescue seed
C 1209.24 Kentucky blue grass (Poa pratensis L.) seed
1209.25 Rye grass (Lolium multiflorum Lam., Lolium perenne L.)
seed
1209.26 Timothy grass seed
D 1209.29 Other
1209.30 Seeds of herbaceous plants cultivated principally for their
flowers
- Other:
1209.91 Vegetable seeds
E
1209.99 - Other
This heading covers all seeds, fruit and spores of a kind used for
sowing. It includes such products even if they are no longer capable
of germination. However, it does not include products such as
F those mentioned at the end of this Explanatory Note, which,
although intended for sowing, are classified elsewhere in the
Nomenclature because they are normally used other than for
sowing.
The heading includes beet seeds, grass or other herbage seeds
G (lucerne, sainfoin, clover, fescue rye grass, Kentucky blue grass,
timothy grass, etc.), seeds of ornamental flowers, vegetable seeds,
seeds of forest trees (including pine cones bearing seeds), seeds
of fruit trees, seeds of vetches (other than those of the species
Vicia faba, ie., broad beans and horse beans), seeds of lupines,
tamarind seeds, tobacco seeds, and seeds (not themselves used
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primarily in perfumery, in pharmacy or for insecticidal, fungicidal A
or similar purposes) of plants yielding the products of heading
12.11.
xx xx xx
The heading excludes:
(a) Mushroom spawn (heading 06.02). B

(b) Leguminous vegetables and sweet corn (Chapter 7).
(c) Fruit of Chapter 8.
(d) Spices and other products of Chapter 9.
C
(e) Cereal grains (Chapter 10)
(f) Oil seeds and oleaginous fruits of headings 12.01 to 12.07.
(g) Seeds and fruit which are themselves of a kind used primarily
in perfumery, in pharmacy, or for insecticidal, fungicidal or similar
purposes (heading 12.11) D
(h) Locust beans (heading 12.12).
xx xx xx
12.11 – Plants and parts of plants (including seeds and fruits), of
a kind used primarily in perfumery, in pharmacy or for insecticidal,
fungicidal or similar purposes, fresh or dried, whether or not cut, E
crushed or powdered.
1211.10 – Liquorice roots
1211.20 – Ginseng roots
1211.30 – Coca leaf F
1211.40 – Poppy straw
1211.90 – Other
This heading covers vegetable products of a kind used primarily
in perfumery, in pharmacy or medicine, or for insecticidal, fungicidal, G
parasiticidal or similar purposes. They may be in the formof whole
plants, mosses or lichens, or of parts (such as wood, bark, roots,
stems, leaves flowers, petals, fruits and seeds (other than
oleaginous fruits and oil seeds classified in headings12.01 to 12.07),
or in the form of waste resulting, in the main, from mechanical
H
164 SUPREME COURT REPORTS [2022] 17 S.C.R.

A treatment. They remain in the heading whether fresh or dried,
whole, cut, crushed, ground or powdered or (where appropriate)
grated or hulled. Products of this heading impregnated with alcohol
remain classifiedhere.”
14. Though not cited or relied upon by either party, for
B completeness,we would like to reproducethe relevant Headings of
Chapter 9 and the General and Explanatory Notes applicable:
“Chapter 9: Coffee, Tea, Mate and Spices
General:
This Chapter covers:
C (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 as
condiments.
xx xx xx
D This Chapter further excludes:
(a)-(c)
(d) Certain fruits, seeds and parts of plants which, although they
can be used as spices, are more often employed in perfumery or
in medicine (heading 12.11)(e.g., cassia pods, rosemary, wild
E marjoram, basil, borage, hyssop, all species of mint, rue and sage).
xx xx xx
09.09 - Seeds of anise, badian, fennel, coriander, cumin or caraway;
juniper berries.
0909.10 – Seeds of anise or badian
F 0909.20 – Seeds of coriander
0909.30 – Seeds of cumin
0909.40 – Seeds of caraway
0909.50 – Seeds of fennel; juniper berries
These fruits or seeds are used for consumption as spices, for
G
industrial purposes (e.g., in distilleries) and for medicinal purposes.
They remain in this heading even when, in case of anise seeds in
particular, they are put up (e.g., in sachets) for making herbal
infusions or herbal “teas”.
xx xx xx
H
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09.10 – Ginger, saffron, turmeric (curcuma), thyme, bay leaves, A
curry and other spices.
0910.10 – Ginger
0910.20- Saffron
0910.30 - Turmeric (curcuma)
0910.40 - Thyme; bay leaves B
0910.50- Curry
- Other spices:
0910.91— Mixtures referred to in Note 1 (b) to this Chapter
0910.99 — Other C
Thus, the seeds of anise, badian, fennel, coriander, cumin,and
caraway fall under the Heading 09.09. The Note is inclusive and states
that these seeds may be used for consumption as spices, for industrial
purposes and for medicinal purposes. However, what is of relevance is
the General Note 2 which refers to a group of vegetable products including
seeds etc. rich in essential oils and aromatic principles, or which on D
account of their characteristictaste are mainly used as condiments.
However, the Chapter excludes certain fruits, seeds, and parts of plants
which although used as spices are more often employed in perfumery or
in medicine and are classified under heading 12.11.
15. The first Chapter Note to Chapter 8 stipulatesthat inedible E
nuts and fruits are not covered by the Chapter. Clearly, for the purpose
of classification, this Note draws a distinction between ‘edible’ and
‘inedible’ fruits. Etymologically, the word ‘edible’ derives from the Latin
word ‘edibilis’ which means ‘eatable’.The word ‘edible’ as per Webster’s
New International Dictionary means “fit to be eaten as food; eatable;
F
esculent.”The Concise Oxford English Dictionary defines edible as
“fit to be eaten”.The phrase ‘fit to be eaten’can implyan absence of
harmful effects.However, whilethe word ‘edible’ seems simple, it
warrants elaboration as over-simplification will be problematic.Ben
Baumgartner, in his article,14 has referred to several judgments of different
courts inthe United States of America to argue that the decisions have G
culminated in the various tests and parameters to determine the meaning
of the word ‘edible’.These are extracted below:
14
Ben Baumgartner. “Chewing it Over: Determining the Meaning of Edible In the
Harmonized Tariff Schedule of the United States”. Kansas Law Review, Kansas Law
Review Inc. November, 2015: vol. 64(1). H
166 SUPREME COURT REPORTS [2022] 17 S.C.R.

A “Thus, courts have turned to, and parties have argued for, various
other tests to determine whether a good is edible. Such tests
include: (1) whether the good appears edible to the senses,(2)
whether the good provides nourishment, (3) whether the good’s
constituent parts are edible, (4) whether the good is principally
used as food, (5) whether the good may be eaten without harmful
B
effects, (6) whether the good is “habitually eaten”, and (7) whether
the good is actually eaten. This Comment argues that a good should
be considered edible if it can be eaten without harmful effects,
but that whether the good is “habitually eaten” should control if
testing the good is dangerous, and if neither of these tests yields a
C result, the matter should be resolved by whether the good is actually
eaten.”
The author thereafter goes on to argue that an item should be
considered edible if it can be eaten without harmful effects, however,
the‘habitually eaten’ test would apply if the testing of the goods to check
D for harmful effects is dangerous.If neither of the two tests yield a result,
the matter should be resolved by determining if the itemwas actually
eaten. We need not discuss this article in detail but for the purpose to
record that the word ‘edible’ is capable of diverse and multiple meanings,
which are plausible. For the purpose of the present case, the word ‘edible’
E must be construed using the principle of common parlance, which has
been discussed supra. The law-makers, while enacting statutes, are
cognizant of the way in which a word might be understood in common
or trade parlance. Thus, if a meaning different than that attributed to it
by people who are conversant in that subject matter was intended to be
attached to a word, the same would be specifically delineated by way of
F a definition. The word ‘edible’ has no such specific definition attached
to it, and therefore, must be interpreted using the common parlance test.
The question which so arises is whether the goods – ‘anardana’, are
dried pomegranates, which when fresh are understood as‘edible’ fruits
in common parlance. Before we elaborate on the factual aspect, the
desideratum requires that we consider sub-heading 081340.90 in Chapter
G
8.
16. The contention of the appellant is that the goods are covered
by 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
H
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Headings 08.01 to 08.06. If the dried fruits are relatable to the fresh A
fruits classified under the Headings 08.07 to 08.10, they would fall in the
category of ‘other fruits’ in 0813.40. The dried fruits, for the purpose of
this Heading, may be prepared either by drying directly in the Sun or by
industrial process like tunnel drying. The last portion of the Explanatory
Note to Heading 08.13 states that products consisting of mixtures of one
B
or more of the dried fruits of this Heading with plants or parts of plants
of other Chapters or with other substances, such as one or more plant
extracts, are excluded. Reference is made to Heading 21.06 in this regard.
This Note, however, is not applicable to the goods in question, as they
are not mixed with other plants or parts of plants.
C
17. It is also required to be noted that the Explanatory Note to
Heading 08.10 states that the Heading covers all edible fruits not falling
in any preceding Heading of the Chapter, nor included in other Chapters.
Any fruit included in any other Chapter, is not to be included under the
sub-heading 08.10. Reference in this regard can also be made to the
exclusion in the General Note to this Chapter. The General Explanatory D
Notes exclude a number of vegetable and other products, even though
botanically they are fruits, as they are covered more specifically in other
Chapters. Reference by way of example is made to fruits that are
primarily used in pharmacy or perfumery, locust beans, kernels of apricots
or of similar fruit contained in Chapter 12. The Chapter Note also excludes E
from Chapter 8, the products of Chapter 9.
18. In favour of the appellant’s claim, it must be highlighted that
pomegranates, along with some other fruits, are expresslyincludedinclause
7 to the Explanatory Notes to sub-heading 0810.90. Consequently, it can
be argued with some merit that dried pomegranate,if prepared by drying F
in the Sun or by industrial processes, would fall under sub-heading
0813.40.
19. However, pomegranatesare rather unusual fruits and their
structure is unlike other fruits. The outer most layer is a hard and inedible
shell. The edible part consists ofthe seeds and arils. Arils are the sweet, G
juicy, and crunchy covering that encase the seeds.However, the finding
of the CESTAT is that wild pomegranates from which ‘anardana’ is
made are different from the pomegranate fruit. This finding of fact is
supported by considerable literature which states that ‘anardana’ is
prepared by dehydrating the arils of wild pomegranates, and not from
H
168 SUPREME COURT REPORTS [2022] 17 S.C.R.

A the pomegranate which is eaten as a fresh fruit.15 The conventional
utilization of the wild pomegranate fruit lies in drying the seeds along
with pulp to make‘anardana’. The wild pomegranate fruit is widely
found on the hilly slopes of the Himalayas. It contains high acid content
along with other quality characteristics, which distinguishes it from the
pomegranate fruit which is consumed as a fresh fruit. The dried wild
B
pomegranate arils have a distinct tart and sour flavour, owing to the high
acid content, which gives it the commercial value. ‘Anardana’, therefore,
can be defined as Sun-dried seeds of ripe sour pomegranate, and is
predominantly used as an acidulant in Indian and Persiancuisines, and
for its health benefits in the Ayurvedic system of medicine.
C
20. The respondents, in support of their contention, have relied
upon a certificate issued by Dr.Y.S. Parmar University of Horticulture
and Forestry, Solan, which has been relied upon by the CESTAT and
reads:
“ To Whom It May Concern
D
This is to certify that Anaradana is dried product of local Daru
which grows in wild form in mid hill conditions. The fruits of Daru
are harvested in the month of July/August and seeds after
extraction are dried which is known as Anardana. Whereas, Anar
E 15
Refer to: J. S. Pruthi and A. K. Saxena. “Studies on Anardana”.Journal of Food
Science and Technology, September/October, 1984: vol. 21, and specific reference may
be made to the first paragraph which reads “Dried, sour, whole pomegranate (Punica
granatum L) seeds popularly known as Anardana, is used as an acidulant in Indian
curries, chutneys, etc. in place of tamarind and amchur (dried raw mango) in North
India. It is also used in Ayurvedic system of medicine”.
The research paper by Amit Prashar, S. K. Gupta and Ashok Kumar. “Studies on
F separation techniques of pomegranate seeds and their effect on quality of Anardana”.
African Journal of Biochemistry Research, October, 2009: vol.3(10) states “the
dehydrated seeds of wild pomegranate fruits (Anardana) are used as acidulent in culinary
preparations 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 &
G Applied Chemistry, August, 2020: vol.21(11), the relevant portion of which reads “the
fruit (wild pomegranate) being highly acidic in nature is being processed into its dried
product known as anardana. Dried wild pomegranate arils with distinct sour or tart
flavour are commercially available in many West and East Asian countries. Anardanais
a good source of organic acids, sugars, vitamin C, phenols, flavonoids and have been
used in formulations of various ayurvedic medicines which are helpful in curing a
H number of ailments”.
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is used for fresh fruit purpose and its seeds are consumed as such A
which 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 is
some that is Punica granatum and Anardana is not a dried
produce”. B
21. We will now proceedto examine Heading 12.09, and in
particular, sub-heading 1209.99, along with the applicable Notes. Chapter
Note 3 of Chapter 12 states that for the purpose of Heading 12.09, the
seeds specified therein, which include seeds of fruit trees,are to be
regarded as ‘seeds of a kind use of sowing’. Chapter Note 3, therefore, C
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, D
also explicitly exclude fruits of Chapter 8, which Chapter subject to the
exclusions and the principles of interpretation that apply to resolve conflict
of classification of entries, applies to ‘edible fruits’ and not ‘inedible
fruits’.
22. We will now examine the Explanatory Notes to Heading 12.09. E
The first paragraph of the Explanatory Notes to Heading 12.09 statesthat
the Heading covers all seeds, fruits and sporesof a kind usedfor sowing.
It includes such products even if they are no longer capable of
germination. This statement has to be read in conjunction withChapter
Note 3, which states that for the purpose of Heading 12.09, seeds of F
fruit 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 the
end of the Explanatory Note even when the seeds mentioned therein
are used for sowing as they were classified elsewhere in the
nomenclature.The exclusion vide clauses(a) to (h)confirms and validates
the first paragraph of the Explanatory Notes to the Heading 12.09. The G
second paragraph of the Explanatory Notes,in addition to the seeds already
excluded by Chapter Note 3, also excludes the seeds and fruits which
are primarily used in perfumery, pharmacy or for insecticidal, fungicidal
or similar purposes, as they are covered under Heading 12.11. This is
reiterated by clause (g) of the Explanatory Notewhich states that seeds H
170 SUPREME COURT REPORTS [2022] 17 S.C.R.

A and fruits, which are themselves of a kind primarily used in perfumery,
pharmacy or for insecticidal, fungicidal or similar purposes would be
covered under the Heading 12.11.
23. Heading 12.11 states that the plants and parts of plants including
seeds and fruits, of the kind used primarily in perfumery, pharmacy or
B for insecticidal, fungicidal or similar purposes, fresh or dried, whether or
not cut, crushed or powdered would be covered by the said Heading.
We need not refer to thisHeading in detail, except noticing the details of
the products included in the said heading, which include seeds as in the
case of Ambrette, Angelica, Burdock, etc., among others. After
enumerating the list, the Explanatory Notes state that the list is not
C exhausted and is given to assist in the identification of the plants. Mention
of botanical names of a particular species does not necessarily indicate
that other species of the same plant family are not classified in the
Heading. It is further stated that products of this Heading which are
regarded as narcotic drugs under international instruments, are indicated
D in the list at end of Chapter 29.
24. The word ‘seed’ in common parlance and in commercial sense
means the grains or ripened ovules of plants used for sowing. The normal
function of a seed is to germinate and produce a new plant. Broadly, a
seed includes a propagative structure such as a spore, or a small dry
E fruit. Some fruit and vegetable seeds are edible and are used by human
beings as food or even as condiments. However, as explained above, as
per the Chapter Note 3 “seeds of forest trees, seeds of fruit trees…….are
to be regarded as seeds of a kind used for sowing”.
25. In the context of the present case, once we accept the finding
F of fact recorded by the CESTAT that ‘anardana’ is a dried product of
local ‘daru’ or wild pomegranate, which grows in mid hill conditions and
which fruit in its fresh form is different from the pomegranate included
in clause 7 to Heading 08.10, as this wild pomegranate is not consumed
as a fresh fruit, the contention ofthe Revenue must fail. GRI 3,which in
the absence of the Heading, Section or Chapter Notes, prescribes the
G order 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 counsel
for the Respondent is correct that when the Revenue challenges the
H classification made by the assessees, the onus is on the Revenue to
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establish that the item in question falls in taxing category as claimed by A
them.16 The burden is on the Revenue to adduce proper evidence to
show that the goods are classifiable under a different heading than that
claimed by the assessee. The finding of fact as recorded by CESTAT
gets reinforced by the policy condition attached to the sub-heading
1209.99.00 of the Import Policy which specifically states - ‘import of
B
pomegranate seeds will be free’. Without any doubt, sub-heading
1209.99.00 in the Import Policy correlates to sub-heading 1209.99 to
Chapter 12 of the HSN. The contention of the Revenue that the Import
Policy is in the nature of delegated legislation albeit correct, would not
make any difference in the context of the present case as the policy
condition in the Export/Import Policy specifically includes pomegranate C
seeds – as ‘anardana’ under sub-heading 1209.99.00, whereas the
Schedule to the Customs Tariff Act, 1975 merely reproduces the Heading
and the sub-heading of the HSN, without specifically including or
excluding pomegranate seeds under the sub-heading 1209.99.
26. For the reasons stated above, the appeals by the Revenue D
must fail and are liable to be dismissed. However, before parting, we
must advert to the reason why we have referred to and reproduced
Heading 12.11 and Heading 09.10 under Chapter 9. There are also several
sources which suggests that ‘anardana’ is primarily used as condiment
and in pharmacy for preparation of Ayurvedic medicines.17 However,
we would not express any final opinion in this regard as the Revenue E
has not relied upon said headings and the show-cause notice which
resulted in the adjudication orders and the appellate orders was restricted
and confined to claim that the goods would be covered under the sub-
heading 0813.40.90.
27. As a postscript, it is also worth mentioning that pomegranate F
seeds are one of the items notified and recognised as a‘spice’under the
schedule of the Spices Board Act, 1986. Section 2(n) of this Act states

16
SeeHPL Chemicals Ltd. v. Commissioner of Central Excise, Chandigarh (2006) 5
SCC 208, ParleAgroPvt. Ltd. v. Commissioner of Commercial Taxes, Trivandrum
(2017) 7 SCC 540, Union of India &Ors. v. Garware Nylons Ltd. &Ors. (1996) 10 SCC
G
413.
17
The main application of ‘Anardana’ as per the Council of Scientific & Industrial
Research, 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. H
172 SUPREME COURT REPORTS [2022] 17 S.C.R.

A 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 very
different picture and contradicts the contention of the Revenue. As per
the 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 under
the sub-heading 3004.90.11 as ‘medicaments of Ayurvedic system’. While
B
we express no opinion in this regard, it is surprising that, for the import of
the very same goods, the Revenue seek classification under Heading
0813. We are conscious that the above observations may lead to another
round of litigation. The Revenue,it may be advisable, should take a
considered policy decision after examining the data and ascertaining the
C views of the trade associations on classification of ‘anardana’ or by
fixing a specific customs duty.Till the said exercise is undertaken, the
classification as determined by the CESTAT may be continued to avoid
confusion and litigation.
28. Keeping in view the aforesaid, the appeals are dismissed without
D any order as to costs.

Ankit Gyan and Amarendra Kumar Appeals dismissed.
(Assisted by : Pragya Samal, LCRA)

E

F

G

18
H The data is available on https://www.seair.co.in/anardana-hs-code.aspx.