Holding

Note I(a) of Chapter 84 is clear and unambiguous, the ejusdem generis rule does not apply, and the Karbate Tubes must be classified under sub‑heading 6815.10 of Chapter 68.

Summary

Grasim Industries imported 14,700 Karbate Tubes, artificial graphite components of heat exchangers, and sought classification under Chapter 84 (sub‑heading 8419.50) of the Customs Tariff Act, 1975. The Revenue argued that Note I(a) of Chapter 84 expressly excludes such items as "other articles of Chapter 68" and therefore they must be placed under Chapter 68, sub‑heading 6815.10. The appellant contended that the note only excludes millstones, grindstones, etc., i.e., sub‑heading 6804, and that the rule of ejusdem generis limits the exclusion to items similar to those listed. The Supreme Court held that the language of Note I(a) is clear, does not contain a genus followed by general words, and thus the ejusdem generis rule is inapplicable; consequently the tubes are excluded from Chapter 84 and fall under sub‑heading 6815.10. The appeal was dismissed.

Issues considered

Whether Karbate Tubes are classifiable under Chapter 84 sub‑heading 8419.50 or Chapter 68 sub‑heading 6815.10 of the Customs Tariff Act, 1975.
Whether Note I(a) of Chapter 84 excludes the Karbate Tubes from Chapter 84.
Whether the rule of ejusdem generis can be invoked to limit the scope of Note I(a).

Legislation cited

Customs Act, 1962s. 130-E
Customs Tariff Act, 1975

Subjects

Customs classificationTariff interpretationEjusdem generisNote I(a) Chapter 84Statutory interpretationCustoms Tariff Act 1975Customs Act 1962

Judgment

MIS GRASIM INDUSTRIES LTD. A
v.
COLLECTOR OF CUSTOMS, BOMBAY

APRIL 4, 2002

[S.P. BHARUCHA, CJ., N. SANTOSH HEDGE AND B
ARIJIT PASAYAT, JJ.]

Customs Tariff Act, 1975-Tariff item : Sub-heading 6815.10 and
8419.50-Chapter 84..Note (I) (a)-Karbate Tubes which are, Part of Heat
exchangers-Classification of under sub-heading 6815.10-Claim for C
classification under sub-heading 8419.50-Held by tribunal that it cannot be
classified in sub-headings 8419.50 in view of exclusion clause in Note I (a) of
Chapter 84-Plea that the Note excludes only the entries in sub-heading 6804,
hence by appli~tion ofprinciple ofejusdem generis only the articles similar
to the items "in sub-heading 6804 would be excluded-On appeal-Held, D
since the language of the Note is clear and unambiguous and the same does
not speak of a class, category of genus followed by general words, rule of
ejusdem generis would not be applicable.

Doctrines:
E
Principle of ejusdem generis-Applicability of-Discussed

Interpretation of Statutes:

Statutes-Provisions-Words-Interpretation of-To be in the context
in which words used and to be gathered from mens sententia legis of the F
legislature-Clear language of statute-Legislative intent to be gathered
therefrom-Where words clear and intention of legislature conveyed Court
not to amend or alter the provisiOn.

While deciding the question-whether Karbate Tubes which are parts
of Heat exchangers were classifiable under tariff items sub-heading 6815.10 G
or under sub-heading 8419.50 in first schedule of the Customs Tariff Act,
1975--Customs Excise and Gold Control Appellate Tribunal held that the
same would fall under sub-heading 6815.10; and that though it was part of
machinery which might otherwise attract sub-heading 8419.50, but it would
no,t be applicable in view of exclusion in Note J{a) of Chapter 84. H
945
946 SUPREME COURT REPORTS (2002) 2 S.C.R.

A In appeal to this Court appellant-assessee contended that the tubes in
·question being parts of Heat exchangers were classifiable under Chapter 84
and the same could not be excluded by Note l(a) as exclusion in Note l(a) is
. '
restricted only to sub-heading 68.04 which specifically refers mill-stones,
grindstones, grinding wheels and the like, and not to all articles in Chapter
B 68; that by application of principle of ejusdem generis only such article which
are similar to millstones and grind stones would be excluded by the Note;
apd that had the legislature intended to make note l(a) applicable to all the
articles in Chapter 68 it would have used the expression "articles of Chapter
68''. instead of using the expression "other articles of Chapter 68" in the Note.

C Revenue contended that the language of the provision in question is
clear, therefore, if interpretation sought to be put by assessee were to be
accepted, it would mean a complete transformation of the provision by
addition/deletion of certain words, which is not permissible.

Dismissing the appeal, the Court
D
HELD: 1.1. No words or expressions used in any statute can be said to
be redundant or superfluous. In matters of interpretation one should not
concentrate too much on one word and pay too little attention to other ~ords.
No provision in the statute and no word in any section can be construed in
isolation. Every provision and every word must be looked at generally and
E in the context in which it is used. Every statute is an edict of the legislature.
The elementary principle of interpreting any word while considering a statute
is to gather the mens or sententia /egis of the legislature. Where the words are
clear and there is no obscurity, and there is no ambiguity and the intention
of the legislature is clearly conveyed, there is no scope for the Court to take
F upon itself the task of amending or alternating the statutory provisions.
Wherever the language is clear, the intention of the legislature is to be gathered
from the language used. In case of an ordinary word there should be no
attempt to substitute or paraphrase of general application. Attention should
be confined to what is necessary for deciding the particular case.
[951-D-E; G)
G
Collector ofCustom~, Bombay v. Grasim Industries Ltd [2000] S SCC 177,
distinguished.

Gwalior Rayons Silk Mfg (Wvg.) Co. Ltd v. Custodian of Vested Forests,
PalghatandAnr., Affi(1990) SC 1747; UnionoflndiaandAnr. v.DeokiNandan
H Aggarwal, AIR (1992) SC 96; Institute ofChartered Accountants ofIndia v. Price
GRASIM INDUSTRIES v. COLLECTOR OF CUSTOMS. [ARIJlT PASA YAT, J.] 94 7
Waterhouse and Anr., (1997) 6 SCC 312 and Harbhajan Singh v. Press Council A
ofIndia and Ors., JT (2002) 3 SC 21, referred to.

Crawford v. Spooner, (1846) 6 Moore PC 1, referred to.

1.2. Merely because the provision could have been differently worded,
that does not in any way affect the meaning of the expression used as it is B
clear and unambiguous. (952-BJ

Union ofIndia and Anr. v. Delhi High Court Bar Association and drs., JT
(2002) 3 SC 131 and Navin Chandra Mafatlal v. The Commissioner of Income
Tax Bombay City, [1955) I SCR 829, referred to.
c
2.1. The rule of ejusdem generis is applicable when particular words
pertaining to a class, category or genus are followed by general words. In
such a case the general words are construed as limited to things of the same
kind as those specified. The rule reflects an attempt to reconcile incompatibility
between the specific and general words in view of the oth·er rules of D
interpretation that all words in a statute are given effect if possible, that a
statute is to be construed as a whole and that no words in a statute are
presumed to be superfluous. The rul~ applies only when (I) the statute
enumerates the specific words (2) the subjects of enumeration constitute a
class or category, (3) that class or category is not exhausted by the
enumeration, (4) the general terms follow the enumeration and (5) there is E
no indication of a different legislative intent. If the subjects of enumeration
belong to a broad based genus, as also to a narrower genus there is no principle
that the general words should be confined to the narrower genus. (952-E-GJ

2.2. The rule cannot be applied unless there is genus constituted or a
category disclosed. If the prCceding words do not constitute mere specifications F
of a genus but constitute description of a compete genus, the rule has no
application. The rule has to be applied with care and caution. This is not an
inviolable rule of law, but it is only permissible inference, in the absentt of
any indication to the contrary. Where the context and the object and mischief
of the enactment do not require restricted meaning to be attached to words G
of general import, it becomes the.duty of the Courts to give those words their
plain and ordinary meaning. [953-A-B)

• 2.3. Note I(a) of Chapter 84 is clear and unambiguous. It does not speak
of a class, category or genus followed by general words. The rule of ejusdem
generis has, therefore, no application. [954-BJ H.
948 SUPREME COURT REPORTS [2002] 2 S.C.R.

A United Towns Electric Co. Ltd v. A.G. for Newfoundland, (1939) 1 All ER
423 PC. ~
('

Statute Law (Seventh Edition) by Craies page 181, referred to.

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 1951 of
B 1998.

From the Judgment and Order dated 16.1.98/24.11.97 of the Customs
Excise and Gold (Control) Appellate Tribunal, New Delhi in A.No. C/965/93-
D/F.O.No.C/13 of 1998-D.

C Joseph Vellapally, Ms. Robina Nath, Ms. Veronika Mohan and Umesh
Kumar Khaitan for. the Appellant.

Soli J. Sorabjee, Attorney General, Prateek Jalan, Ms. Smita Inna and
B.K. Prasad for the Respondent.

D The Judgment of the Court was delivered by

ARIJIT PASAYAT, J. In this appeal under Section 130-E of the
Customs Act, 1962 (in short the 'Act') , the only question that falls for
adjudication is whether Karbate Tubes made of artificial graphite impregnated
with Phenolic resin which are parts of Heat exchangers are classifiable under
E Tariff Item: sub-heading 6815.10 in First Schedule of the Customs Tariff Act,
1975 (in short 'Tariff Act') as held by the Revenue, or under sub-heading
8419.50 as claimed by the assessee-importer.

Factual scenario needs to be noted in brief. Orders were placed by the
F assessee on a foreign manufacturer for supply of 14700 Karbate Tubes which
were supplied during April and July, 1992. An order was passed by the Assistant
Collector of Customs (Appraising Group III) classifying the goods under
Chapter heading 68.15 and sub-headings 6815.10, whereby the demand raised
by the Appraiser was confirmed. Appeal filed before the Collector (Appeals)
did not bring any relief to the assessee. Matter was carried in further appeal
G before the Customs, Excise and Gold Control Appellate Tribunal, New Delhi
(in short 'Tribunal') . As there was difference in view between two members
of the Tribunal, the matter was referred to a larger Bench which by the
impugned order dated 24.11.1997 held that the goods were rightly classified
under Chapter 68 and not Chapter 84. The main ground which appears to have
been pressed before the Tribunal by the assessee was that the Karbate Tubes
H which are made of artificial graphite cannot be classified under tariff heading

r
GRASIM INDUSTRIES"· COLLECTOR OF CUSTOMS [ARIJIT PASA YAT, J.] 949

68.15, as according to it, same applies only to natural graphite. The Tribunal A
-
~
did not find any substance in this plea. Reference was made to the Harmonized
System Nomenclature (in short 'HSN') and it observed that Karbate Tubes
made of artificial graphite being non-electric articles made of graphite fall
under Chapter sub-heading 6815.10. It was further held that though this is a
part of machinery which may otherwise attract sub-heading 8419.50, but the
same is not applicable in view of the exclusion in Note !(a) of Chapter 84. B

In support of the appeal, learned counsel for the asse'5ee-appellant
submitted that the tubes in question are classifiable under Chapter 84 as parts
of Heat exchangers, are not excluded by Note l(a) of Chapter 84, and are to
be classified under Entry 84.19. With reference to the Note l(a) of Chapter
84, it is submitted that by application of the ejusdem generis principles, only
c
such articles which are similar to millstones or grindstones are excluded. In
reply, learned Attorney General submitted that the language of the provision
in q1,1~stion is clear: and if the interpretation sought to be put by the assessee
is accepted, it would mean a complete transformation of the provision by
>
addition/deletion of certain words, which is not permissible. D
In order to appreciate rival submissions, it would be proper to take note
of the entries on which the assessee and the Revenue have placed reliance. In
Chapter 68 Section Xlll (Articles of stone, plaster, cement, asbestos, mica, or
.,
I
similar materials: ceramic products; glass and glassware) , heading No. 68.15
E
reads as under:

Heading No.68.15- "Articles of stone or of other mineral substances
(including articles of peat) , not elsewhere specified or included"

Sub-heading No.6815.10- "Non-electrical articles of graphite or other
carbon"65% F
In Note I of Chapter 84 it is provided as follows:

"I. This Chapter does not cover:

(a) Millstones, grindstones or other articles of Chapter 68;
G
(b) Appliances or machinery (for example, pumps) or parts thereof, of
ceramic material (Chapter 69) ;

Laboratory glassware (heading No. 70.17) ; machinery appliances or
other articles for technical uses or parts thereof, of glass (heading No.
70.19 or 70.20) ; H
950 SUPREME COURT REPORTS [2002] 2 S.C.R.

A (d) Articles of heading No. 73.21 or 73.22 or similar articles of other ..
base metals (Chapter 74 to 76 or 78 to 81) ;

(e) Electro-mechanical tools for working in the hand, of heading
-
No.85.08 or electro-mechanical domestic appliances of heading No.
,85.09; or
B
(t) Hand-operated mechanical floor sweepers, not motorized (heading
No. 96.03) ." ":

Chapter 84 appears in Section XVI and under the heading "Nuclear
reactors, boilers, machinery and mechanical appliances, parts thereof" the
C aforesaid exclusions are provided in Notes l(a) to (t) .

Assessee' s stand was that if at all the Note 1(a) has application, that will
be restricted to 68.04, which specifically refers to millstones, grindstones,
grinding wheels and the like without frameworks and ~annot take within its
ambit all the articles which are covered by Chapter 68. As noted above, it was
D submitted that the expression 'other articles of Chapter 68' has to take colour
from "millstones, grindstones". With reference to a decision of this Court in
Collector of Customs, Bombay v. Grasimfndustries Ltd, [2000] 5 SCC 177,
· it was submittea that th~ issue is settled beyond doubt. Stro~g reliance was
placed on para 12 of the judgment which reads as follows:

E · "In view of the categorical finding, there can be no hesitation in
holding that the goods in question fall within Heading 84.17(1) of
CTA unless it is shown they being millstones, grindstones and other
articles falling within Chapter 68 have to be excluded from Heading
84.17(1) of CTA in view of Note l(a) of Chapter 84. Obviously the
F articles in question are not "millstones, grindstones or the like. We
have carefully gone through various sub-headings of Chapter 68 of
CTA and we are of the view that the contention that the goods in
question fall within Chapter 68 has no substance."

(Underlined for emphasis)
G The plea of. the appellant is clearly untenable. The issue wh4;h was
unde.r consideration in the said .case was entirely different and the se,ntence
underlined cannot be read out of context to draw an inference that·Note· l(a)
related to articles -which are millstones, grindstones or the like. It is to be
noted that the only plea which was raised before the Tribunal related to
H artificial and natural graptlite. The points n<?W canvassed were n?t urged before
-
I
GRASIM INDUSTRIES v. COLLECTOR OF CUSTOMS [AR!JIT PASA YAT, J.]

the Tribunal; but since they involve question of law we have permitted the
95 J

A
parties to address us on the various aspects related to the core question.

It is significant to note that in different sub-headings the words 'similar'
and 'other' have been used. It appears that wherever the expression 'similar'
was intended to be used, it has been so done. Reference may be made in.this
context to headings and sub-headings like 6802.10, 6806. I 0 and 68.09 where B
the expression used is 'similar articles'. In some other headings and sub-
headings, the expression 'and the like' have· also been used, for example
• 6804.10 and 68.11. It cannot be said that different expressions like 'similar'
and 'other' or 'and the like' have been used without any basis. Even in the
Note 1 itself in clauses 'a' and 'd', the expressions used are 'other articles' C
and 'similar articles' respectively. Such user as noted above cannot be said to
be without basis or purpose.

No words or expressions used in any statute can be said to be redundant
or superfluous. In matters of interpretation one should not concentrate too
much on one word and pay too little attention to other words. No provision D
in the statute and no word in any section can be construed in isolation. Every
provision and every word must be looked at generally and in the context in
which it is used. It is said that every statute is an.edict of the legislature. The
elementary principle of interpreting any word while considering a statute is to
gather the mens or sententia legis of the legislature. Where the words are clear
and there is no obscurity, and there is no ambiguity and the intention of the E
legislature is clearly conveyed, there is no scope for the court to take upon
itself the task of amending or alternating the statutory provisions. Wherever
the language is clear the intention of the legislature is to be gathered from the
language used. While doing so what has been said in the statute as also what
has not been said has to be noted. The construction which requires for its p
support addition or substitution of words or which results in rejection of
word.s has to be avoided. As stated by the Privy Council in Crawford v.
Spooner [(1846) 6 Moore PC 1] "we cannot aid the Legislature's defective

.. phrasing of an Act, we cannot add or mend and, by construction make up
deficiencies which are left there''. In case of an ordinary word there should be
no attempt to substitute or paraphrase of general application. Attention should G
be confined to what is necessary for deciding the particular case. This principle
is too well settled and reference to few decisions of this Court would suffice.

- [See: Gwalior Rayons Silk Mfg. (Wvg.) Co. Ltd v. Custodian of Vested Forests,
Pa/ghat and Anr., AIR (1990) SC 1747, Union of India and Anr.. v. Deoki
Nandan Aggarwal, AIR (1992) SC 96, Institute of Chartered Accountants of H
952 SUPREME COURT REPORTS [2002] 2 S.C.R.

' A India v. Price Waterhouse and Anr., [1997] 6 SCC 312 and Harbhajan Singh
v. Press Council of India and Ors., JT (2002) 3 SC 21 "
...
It was urged by learned counsel for the assessee that the legislature
could have, if it had really so intended, couched the Note 1 (a) in a different
manner i.e. all 'articles of Chapter 68' instead of the present expression used.
B Merely because the provision could have been differently worded, does not in
any way affect the meaning of the expression used as it is clear and
unambiguous. In Union ofIndia and Anr. v. Delhi High Court Bar Association
and Ors., JT [2002] 3 SC 131, following observations in Navin Chandra
Mafatlalv. The Commissioner of Income Tax Bombay City, [1955] 1SCR829
C were noted.

" ....As pointed out by G1'1)'er CJ. in The United Provinces v. Atiqa
Begum, (1940) FCR 110 at page 134 none of the items in the Lists is
to be read in a narrow or restricted sense and that each general word
should be held to extend to all ancillary or subsiqiary matters which
D can fairly and reasonably be said to be comprehended in it."
In the background of what has been urged by the assessee it has to be
further seen whether the.principles of ejusdem generis have application. The
rule is applicable when particular words pertaining to a class, category or
genus are followed by general words. In such a case the general words are
E construed a,s limited to things of the same kind as those specified. The rule
reflects an attempt to reconcile incompatibility between the specific and general
words in view of the other rules of interpretation that all words in a statute are
given effect if possible, that a statute is to be construed as a whole and that
no words in a statute are presumed to be superfluous. The rule applies only
when (1) the statute enumerates the specific words, (2) the subjects of
F enumeration constitute a class or category, (3) that class or category is not
exhausted by the enumeration, (4) the general tenns follow the enumeration
and (5) there is no indication of a different legislative intent. If the subjects
of enumeration belong to a broad based genus, as also to a narrower genus
there is no principle that the general words should be confined to the narrower
G genus. In interpreting Section 30 of the United Towns Electrical Company
<
Act, 1902 which reads: "the company shall be liable for water rates on all
lands and buildings, owned by it in the aforesaid town, but otherwise shall be
exempted from taxation", the Privy Council rejected the contention that the
word "taxation" should be considered ejusdem generis with "water rate". It
was held that there is no room for application of the principle in the absence
H of any mention of a genus, since the mention of a single species for example
GRASIM INDUSTRIES v. COLLECTOR OF CUSTOMS [ARIJ!T PASAYAT, J.] 953

of water rates does not constitute a genus. [See: United Towns Electric Co. A
Ltd. v. A.G. for Newfoundland, (1939) 1 ALL ER 423 PC. The rule cannot be
applied unless there is genus constituted or a category disclosed. If the preceding
words do not constitute mere specifications of a genus but constitute description
of a complete genus, the rule has no application. The rule has to be applied
with care and caution. This is not an inviolable rule of law, but it is only
permissible inference, in the absence of any indication to the contrary. Where B
the context and the object and mischiefof the enactment do not require restricted
meaning to be attached to words of general import it becomes the duty of the
Courts to give those words their plain and ordinary meaning. Following
enunciation in Craies on Statute Law (Seventh Edition) at page 181 succinctly
states the principle. C
"The modem tendency of the law, it was said, by Asquith J in Allen
v. Emmerson (1944) KB 362 is " to attenuate the application of the
rule of ejusdem generis." To invoke the application of the ejusdem
generis rule there must be a distinct genus category. The specific
words must apply not to different objects of a widely differing character D
but to something which can be called a class or kind of objects. Where
this is lacking, the rule cannot apply, Hood-Barrs v. /RC, (1946) 2 All
ER 768) but the mention of a single species does not constitute a
genus. Per Lord Thankerton in United Towns Electric Co. Ltd. v. Att.
General for Newfoundland, (1939) 1 All ER 423. "Unless you can E
find a category," said Farwell L.J., in Tillmans and Co. v. S.S.
Knutsford, (1908) 2 KB 385 '1here is no room for the application of
the ejusdem generis doctrine," and where the words are clearly wide
in their meaning they ought not to be qualified on the ground of their
association with other words. For instance, where a local Act required
that "theatres and other places of public entertainment" should be F
licensed, the question arose whether a "fun-fair" for which no fee was
charged for admission was within the Act. It was held to be so, and
that the ejusdem generis rule did not apply to confine the words "other

- places" to places of the same kind as theatres. So the insertion of such
words as " or things of whatever description" would exclude the rule. G
(Attorney General v. Leicester Corporation (1910) 2 Ch. 359. Jn
N.A.L.G.O v. Bolton Corpn. (1943) AC 166 Lord Simon L.C. referred
to a definition of "workman" as any person who has entered into a
works under a contract with an employer whether the contract be by
way of manual labour, clerical work "or otherwise" and said: "The use
of the words 'or otherwise' does not bring into play the ejusdem H
954 SUPREME COURT REPORTS [2002] 2 S.C.R.

A generis principle: for 'manual labour' and 'clerical work' do not belong
to a single limited genus" and Lord Wright in the same case said: .•

"The ejusdem generis rule is often useful or convenient, but it is
merely a rule of construction, not a rule of law. In the present case it
is entirely inapt. It presupposes a 'genus' but here the only 'genus' is
a contract with an employer".
B
The Note I (a) of Chapter 84, as noted above, is clear and unambiguous.
It does not speak of a class, category or genus followed by general words. The
rule of ejusdem generis has, therefore, no application. .~

Above being the position this appeal has no merit and is dismissed.
c
K.K.T. Appeal dismissed.

-
·~