Holding

Items that are ordinarily immovable and cannot be removed without cannibalising, such as storage units, counters and kitchen units, are not "furniture" and therefore not liable to excise duty under sub‑heading 9403.

Summary

Craft Interiors Pvt. Ltd. installed storage units, kitchen counters, running counters and large reception tables as part of turnkey interior projects. The Central Excise authorities treated these items as "furniture" under Tariff Item 9403 of the Central Excise Tariff Act, 1985 and levied excise duty. The company contended that the items are fixtures, immovable and therefore not furniture. The Tribunal upheld the Commissioner’s classification, but the Supreme Court examined dictionary and popular meanings of "furniture" and held that items which are ordinarily immovable and cannot be removed without cannibalising are not furniture. Consequently, such items are outside the scope of sub‑heading 9403 and not liable to excise duty. The Court allowed the appeals, set aside the earlier orders and remitted the matter to the Tribunal for fresh consideration.

Issues considered

Whether storage cabinets, kitchen counters, running counters and large reception/conference tables are excisable as "furniture" under Central Excise Tariff Act, 1985 (Tariff Item 9403).

Legislation cited

Central Excise Act, 1944s. 35L(b)
Central Excise Tariff Act, 1985s. Tariff Item No. 9403

Subjects

central excisefurniturefixturestariff classificationimmovable propertyexcise dutyinterpretationdictionary meaningpopular meaning

Judgment

.._ ....
A MIS. CRAFT INTERIORS PVT. LTD.

..
v.
COMMISSIONER OF CENTRAL EXCISE, BANGALORE & ANR.

OCTOBER 31, 2006

B [ASHOK BHAN AND MARKANDEY KA TJU, JJ.]

• f
Central Excise Tariff Act, 1985-Tariff Item No.9403-Furniture or
fixture -Dictionary definitions show that ordinarily ''furniture" refers to
movable items-such as desks, tables, chairs, required for use or ornamentation
c in a house or office and is not something immovable or fvced in a position
which can be removed only by cannibalizing-The latter are fixtures and not
furniture-Though sometimes chairs, beds, tables, desks, etc. are affvced to.
the ground, but they will still be called ''furniture" since popular meaning
of the word ''furniture" would prevail over its dictionary meaning-Storage
D units, running counters, over-head unit, rear and side unit, wall unit, pant1y
unit and kitchen unit are ordinarily immovable or cannot be removed without
cannibalizing, hence are not furniture-Words and Phrases-"Furniture"-
Meaning of-Discussed. ..
The question which arises for consideration in these appeals is whether
E storage cabinets, kitchen counters, running counters, large reception/
conference tables etc. are excisable as furniture.

The appellants submitted that these items are fixtures and not furniture,
and hence not subject to levy of excise duty.

Allowing the appeals and remitting the matter to Tribunal for fresh
F consideration, the Court

HELD: 1. A perusal of the definitions given in various dictionaries shows
that ordinarily 'furniture' refers to movable items such as desks, tables,
chairs, required for use or ornamentation in a house or office. Thus,
ordinarily furniture is not something immovable or something which is fixed
G in a position which can be removed only by cannibalizing. The latter are
fixtures and not furniture. 171-G-H; 72-AI

The Concise Oxford English Dictionary (Tenth Edn. Revised); Chambers
English Dictionary and New Webster's Diction01y, referred to.

H 68
'
CRAFT INTERIORS PVT.LTD."· COMMNR. OF CENTRAL EXCISE. BANGALORE [MARKANDEY KA TJU. J.] 69
-~
2.1. Though sometimes chairs, beds, tables, desks, etc. are affixed to A
the ground, but nevertheless they will still be called as furniture. This is
because while interpreting a word one should not only see the dictionary

- meaning but even more the popular meaning which the word has acquired in
common parlance. The word "furniture" has a meaning in common parlance
which every layman understands. It commonly refers to chairs, desks, tables,
beds etc.. Hence, one should give it this popular meaning. [72-D) B
2.2. Storage units, running counters, over-head unit, rear and side unit,
wall unit, pantry unit and kitchen unit are ordinarily immovable or cannot be
removed without cannibalizing, hence are not furniture. (72-A)

"Mimansa Rules of Interpretation" by K.L. Sarkar (Second Edition c
published by Modern Law Publication, Allahabad), referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 5823-5832 of
2005.

From the Final Order No. 717-726/2005 dated 10.5.2005 in Appeal No. E/
144-145/2004, E/1302/2004, E/701-706/2004 and E/1295/2004 of the Customs,
D
Excise & Sei"vice Tax Appellate Tribunal, South Zonal Bench at Bangalore.

V. Lakshmikumaran, A.R. Madhav Rao, Alok Yadav [for M.P. Devanath]
for the Appellant.

K. Radhakrishnan, A. Subba Rao, B. Sunita Rao and Shilpa Singh [for E
B.K. Prasad] for the Respondents.

The Judgment" of the Court was delivered by

MARKANDEY KATJU, J. These appeals have been filed under Section
35L(b) of the Central Excise Act, 1944 against the impugned order of the
-
Customs Excise and Service Tax Appellate Tribunal (hereinafter referred to as
F
'The Tribunal'), South Zone Bench, Bangalore dated 10.5.2005.

Heard learned counsel for the parties and perused the record.

The appellant is a private limited company which undertakes various
activities, which includes civil works, painting, ceiling work, electrical work, G
laying of vinyl flooring, tables, chairs, sofa sets, erection of immovable items
viz., partitions (wooden/glass/aluminium/gypsum board), storages,
workstations, laying of wooden flooring, column cladding, skirting, mirror
paneling, window sill, wooden steps, doors, huge conference tables and huge
reception tables depending on the customer's requirements. The customer
H
/
70 SUPREME COURT REPORTS [2006] SUPP. 8 S.C.R.

A places a purchase order to the appellants on a turnkey basis for the entire
activity. The customer usually gives a bare open floor which has an exterior
wall and internal columns to the appellants for undertaking the work.

In pursuance of the above said activities, the appellant also manufactures
furniture as part of the above mentioned activities.
B The markings based on the drawings approved by the architect are first
made on the floor or the wall, as the case may be, depending on whether the
item to be erected is a storage unit, large conference table/reception table,
running counter etc. Various materials such as wood and plywood are procured
from the open market. Frames of the wood are cut to size and fixed to the wall
C or floor. The plywood required is cut to size and fixed to the wall using screws
and nails. Skeletal boxes are then made and fixed on the wall on marked
position. Interior partitions and she.Ives are then made in the case of storage
units, running counters, rear unit etc. Once these activities are completed the
whole unit is laminated or veneered which would cover the screws and nails.
D In other words, after these storage units, kitchen counters or conference
tables/reception tables are erected they cannot be removed as such and
cannot be moved from one place to another. It cannot be dismantled and
removed in complete or semi knocked condition from one place to another.
It can only be cannibalized as a result of which it gets reduced to broken
pieces of wood, laminates etc.
E The Central Excise authorities issued various show cause notices to the
appellants alleging that the appellants had manufactured and assembled
excisable goods i.e. furniture and furniture parts falling under Chapter 9403
in till: premises of various customers. In response it was contended by the
appellants that activities undertaken by them i.e. erection of storage units,
F kitchen counters, reception tables/conference tables etc. results in emergence
of immovable property and could not be considered as excisable goods.

The Commissioner vide his order dated 24.9.2003 held that items like
storage units, running counters, large reception tables etc. are classifiable
under Chapter 9403 as furniture and liable to excise duty. Aggrieved by the
G said order the appellants filed an appeal to the Customs, Excise and Service
Tax Appellate Tribunal, Bangalore which agreed with the findings of the
Commissioner that although these items emerge on a piece by piece fabrication,
the commodity is known in the market by name of table, storage counters etc..
and as such are classifiable as furniture under Sub-heading 9403 of the
Central Excise Tariff as furniture. Aggrieved, the appellants have filed the
H present appeal.
· CRAFT INTERIORS PVT. LTD. v. COMMNR. OF CENJRAL EXCISE, BANGALORE [MARKANDEY KATJU, J.) 7f

The issue which arises for consideration in these appeals is whether A
. storage cabinets, kitchen counters, running counters, large reception/
conference tables etc. are excisable as furniture.

Learned counsels for the appellants Shri Laxmikumaran and Shri Madhav
Rao submitted that these items are fixtures and not furniture, and hence were
not subject to the levy of excise duty. B
In this connection we may refer to Chapter Sub-heading 9403 of the
Central Excise Tariff Act, 1985 which reads as under:

"Other furniture and parts thereof'

Learned counsel for the appellants submits that the word 'furniture' C
means objects which are moveable and are complete before being placed
either on the floor or the ground. Learned counsel also submitted that the
word 'furniture' does not cover items which emerge either as part of an
immovable property or are erected stage by stage in its completion. These,
he submitted, were fixtures and not furniture. He submitt~d that several of the D
items in question were erected piece by piece and fixed to the wall or ground
and as such are not movable property. In other words, the same cannot l;>e
removed without cannibalizing i.e. without reducing them into broken piece
of wood, laminates etc.

In this connection we may refer to the definition of 'furniture' in various
dictionaries. The Concise Oxford English Dictionary (Tenth Edn. Revised) E
defines 'furniture' as follows :

"the movable articles that are used to make a room or building suitable
for living or working in, such as tables, chairs, or desks".

Similarly, Chambers English Dictionary defines 'furniture' as follows: F
"movables, either for use or ornament, with which a house is equipped".

New Webster's Dictionary defines 'furniture' as follows:

"the movable articles, such as tables, chairs, desks, required for use
or ornament in a house or office" G
Thus, a perusal of the definitions given in various dictionaries shows
that ordinarily 'furniture' refers to movable items such as desks, tables, chairs,
required for use or ornamentation in a house or office. Thus, ordinarily
furniture is not something immovable or something which is fixed in a posHion
which can be removed only by cannibalizing. We agree with learned counsel H
72 SUPREME COURT REPORTS (2006] SUPP. 8 S.C.R .

.. . A for the appellants that the latter are fixtures and not furniture.
Several of the items in question in the present case e.g. kitchen overhead
and below counters, storage units are, in our opinion, clearly not 'furniture'
and hence not excisable under Sub-heading 9403 as furniture.

B In view of the above discussion, we are of the opinion that these
appeals have to be allowed. We hold that items which are ordinarily immovable
or which ordinarily cannot be removed without cannibalizing e.g. storage
units, running counters, over-head unit, rear and side unit, wall unit, pantry J

unit, kitchen unit and other items which are ordinarily immovable or ca.inot
be removed without cannibalizing are not furniture. However, items like tables,
C desks, chairs etc. are furniture and hence excisable.

We may add that sometimes chairs, beds, tables, desks, etc. are affixed
to the ground, but nevertheless they will still be called as furniture (one may
recall the fixed bed in Sherlock Holme's story 'The Speckled Band'). This is
because when we interpret a word we should not only see the dictionary
D meaning but even more the popular meaning which the word has acquired in
common parlance. As stated by K.L. Sarkar in his book "Mimansa Rules of
Interpretation" (see second edition published by Modem Law Publication,
Allahabad), "the popular meaning overpowers the etymological meaning." *

To give an example, the word 'pankaja' literally means born in mud. The
E word 'panka' means 'mud', and the word }a' means 'which is born in'. Hence
the etymological meaning of the word 'pankaja' is that 'which is born in
mud'. Many things can be born in mud e.g. insects, vegetation, water flowers,
etc. However, by popular usage the word 'pankaja' has acquired a particular
meaning in common parlance i.e. lotus. This meaning will, therefore, prevail
F over the etymological meanings.

Similarly, the word 'furniture' has a meaning in common parlance which
every layman understands. It commonly refers to chairs, desks, tables, beds,
etc. Hence we should give it this popular meaning.

The appeals are allowed. The impugned orders are set aside and the
G matter is remitted to the Tribunal to pass a fresh order after hearing the parties
preferably within three months from the date of receipt of this order, in
accordance with Jaw and in the light of the observations made above. No
costs.

B.B.B. Appeals allowed.
H