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Types of Duties

Basic Excise Duty


Special Excise Duty
Additional Duties of Excise (Textiles and

Textile Articles)
Additional Duties of Excise - Goods of Special
Importance
National Calamity Contingent Duty
Education cess
Secondary and Higher Education cess

Background
Constitution of India
Article 265
: Taxes not to be imposed save by authority of law. No tax shall be levied
or collected except by authority of law.
Article 246 (1) : gives power to CG to make laws in respect of matters given in List-I in
Seventh Schedule to the constitution. (UNION LIST)
Article 246(3) :
gives power to SG to make law in respect of matters given in List-II
in Seventh Schedule to the constitution. (STATE LIST)
Union List Entry No. 84
Empowers CG to levy excise duty.
Duties of excise on tobacco and other goods manufactured or produced in India
except - Alcoholic liquors for human consumption, opium, narcotics
But including - Medical and toilet preparation containing alcohol, opium or narcotics.

Background
Duty On
Excisable

: Must be Mentioned in Central Excise Tariff Act, 1895

Goods

: Goods must Moveable and Marketable

Manufactured

: New and identifiable product know in the market


must emerge in India

What are Goods?


The definition under the Sale of Goods Act,

1930
Goods must be moveable,
saleable/marketable
Explanation to Section 2(d) of CE Act, 1944
-states goods include any article, material or
substance which is capable of being bought
and sold for a consideration and such goods
shall be deemed to be marketable

EXCISABLE GOODS
Section 2(d) :
excisable goods means goods specified in the First Schedule and the
Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as
being subject to a duty of excise and includes salt;
Explanation - For the purposes of this clause, goods includes any
article, material or substance which is capable of being bought and sold
for a consideration and such goods shall be deemed to be marketable.

Excisable Goods
Mentioned in CETA
Goods must be mentioned in CETA

Non Excisable goods are those goods which have not been specified

in the CETA, 1985 either in First or Second Schedule.


Excisable goods do not become non excisable even if nil rate of

duty is prescribed in the CETA for them or these are made exempt by
virtue of a notification.
Nil rate of duty is also a rate of duty

NIL RATE OF DUTY STILL


TAXABLE
SUPREME COURT CASES

Wallace Flour Mills Vs. CCE [(1989) 44-ELT-598 (SC)]

Even if the rate of duty is nil, the goods can still be excisable, if
they are manufactured and are marketable goods. Nil rate of
duty is also a rate of duty
Associated Cement Co. Ltd Vs. Commissioner of Customs

[(2001) 128-ELT-21 (SC)]


If by virtue of an exemption notification the rate of duty was
reduced to nil, the goods specified in the Tariff Act would still
be regarded as excisable goods on which nil rate of duty was
payable. Hence, the Supreme Court has not categorically
stated that goods with a nil tariff rate can also be considered
excisable goods.

What is Manufacture?
Process

undertaken
would
amount
to
manufacture as understood under the Central
Excise
The incoming material and the final outgoing
material are to be compared with respect to
their name, character or use.
Ensured that processes not amounting to
manufacture
are
not
described
as
manufacture
Result in attempts to deny credit

What is Removal?
Removal

means the physical act of


shifting/moving the goods
Under excise- the self-removal procedure
No excisable goods on which any duty is
payable
- shall be removed from any place where
they are produced or manufactured or
from warehouse without payment of duty
Rate of duty and tariff valuation would be
done on the date of removal.

Classification of Goods based on Central Excise Tariff


Act,1985
CLASSIFICATION:
What is Classification?:
The process of arriving at a particular sub-heading code at 6-digit
level as per HSN and at 8-digit level as per Central ExciseTariff Act
for a commodity in the Tariff Schedule is called Classification.
Thus, choosing the right heading or sub heading of the Tariff and
determining the applicable rate for particular goods is commonly referred to
as classification of goods.
For determining the rate of duty for a product, first we shall ascertain the
relevant Tariff Heading or sub-heading or tariff item, under which the said
article is covered.
A good nomenclature of goods should ensure;
(i)that every product manufactured or otherwise will get covered under a
code number uniformly applied the world over;
(ii)that a set of Rules is available for interpretation;
(iii)that the nomenclature is accepted internationally as a technical and legal
basis for improving trade relations amongst countries; and
(iv)that a statistical base suitable for computerisation is available.

Classification of Goods based on Central Excise Tariff


Act,1985

TOOLS FOR CLASSIFICATION OF EXCISABLE GOODS:


The following are the important parameters/ ingredients for determination
of classification of goods in the First Schedule to Central Excise Tariff
Act,1985:
(1)HSN along with Explanatory Notes provides a safe guide for
interpretation of an entry.
(2)Section
Notes, Chapter Notes, Sub-Heading Notes and
Supplementary Notes to the Central Excise Tariff Act,1985.
(3)Equal importance to be given to Rules of Interpretation of the
Tariff.
(4)Functional utility, design, shape and predominant usage have
also got to be taken into account.
(5)Statutory Definitions;
(6)Scientific Definitions;
(7)Trade Parlance.

What is classification?
Ascertaining

the
tariff
heading/subheading under which the product is
categorized
In line with Central Excise Tariff Act -Based
on HSN
See the Interpretative Notes at the
beginning of the Tariff + Notes in the
Section and Chapter
Rules for interpretation

CLASSIFICATION
To impose taxes at different rates.
Need to know the details of trade.
Standardization and methodical system of

classification.
Avoid over-simplicity
Avoid unnecessary differentiation

13

USED BY
Customs authorities
Statisticians
Carriers
Producers

14

EVOLUTION
Brussels Tariff Nomenclature 1949
Customs Co-operation Council Nomenclature

1974
Harmonized System of Nomenclature 1988

15

Harmonised System
Harmonized System of Nomenclature
Used as basis for National Customs Tariff

CTA 1975
Used as basis for Levying excise duty in India
CETA 1985 28-2-1986
VAT 2005 many states

16

The Central Excise Tariff Act, 1985


The Central Excise Tariff Act, 1985 came into force on 28.02.1986
It extents to the whole of India and it has been extended to the designated

areas in the Continental Shelf and Exclusive Economic Zone (EEZ) of India
vide Notifn No.166/87 CE dated 11.6.1987.
Objective:
As per Section 2 of the Central Excise Tariff Act, duties of Excise (Basic
Central Excise Duty & Special Excise Duty) are to be levied on the
goods manufactured in India at the rates specified in the First Schedule and
the Second Schedule to the Central Excise Tariff Act, 1985.
What we commonly refer to as the Tariff is actually Schedules to the Central
Excise Tariff Act, 1985.
The Central Excise Tariff Act, 1985 consists of 96 Chapters describing
almost all the goods.
Prior to 28.02.2005, the goods were classified/described against 6 digits
code.
The Central Excise Tariff was amended on 24.02.2005 and the amended Act
came in to force from 28.02.2005 onwards, vide Notification No.8/2005C.E (N.T), dated 24.02.2005 classifying the goods against 8 digits code.
The amended Tariff Act has given the Government an additional power to
amend the Schedules, by notification. This is subject to the condition that
such amendment shall not alter or affect in any manner, the rates of duty.

The Central Excise Tariff Act, 1985


The main features of the new Excise Tariff are:
(a)It is aligned with the 8 digit Customs Tariff.
(b)Goods of the same class have been grouped together to enable parity
in treatment.
(c)It contains Section/Chapter Notes and Sub heading Notes giving
detailed explanation as to the scope and ambit of the respective
chapter. These notes have been given statutory backing and have been
incorporated at the top of each Chapter.
(d)New 8 digit codes have been introduced on par with Customs
Tariff mentioning first four digits to the Heading under a Chapter, first
six digits to the sub-heading under the Chapter and eight digits to the
Tariff Item No. to facilitate more items in the chapter.
(e)Residuary items have been provided separately for each class of
goods
under each Chapter.
(f) Interpretative Rules have also been provided to serve as statutory
guideline for interpreting the Tariff Schedule.

Rate of duty
Eight digit description is referred to as

Tariff item
Rate of duty is indicated against the Tariff
item
If the rate of duty is left blank, then
there is no levy.
If nil is indicated in the rate of duty
column, it denotes that the levy is
attracted but the rate chargeable is NIL.
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The Central Excise Tariff Act, 1985


Difference between the old & new Tariff
Old Tariff
(Prior to 28.02.2005)
Heading No.
Rate of duty

Sub-

New Tariff
(with effect from 28.02.2005)

Description of goods

Tariff Item
2902

Description of goods
Cyclic Hydrocarbons

Unit

Rate of duty

heading No.
-

29.02

2902.00

Cyclic Hydrocarbons

16%

Cyclanes, Cyclenes and cycloterpenes:

2902 11 00 - - Cyclohexane

Kg

12.5%

2902 19 00 Other
Kg
12.5%
2902 20 00 Benzene
Kg
12.5%
2902 30 00 Toluence
Kg
12.5%
Xylenes:
2902 41 00 - - o-Xylene
Kg
12.5%
2902 42 00 - - m-Xylene
Kg
12.5%
2902 43 00 - - p-Xylene
Kg
12.5%
2902 44 00 - - Mixed xylene isomers
Kg
12.5%
50 00 Styrene
Kg.
12.5%
2902 60 00 Ethybenzene
Kg.
12.5%
2902 70 00 Cumene
Kg.
12.5%
2902 90
Other:
2902 90 10 - - Dipentene
Kg.
12.5%
2902 90 20 - - Diphenyl methane
Kg.
12.5%
2902 90 30 - - Dodecyclic benzenes
(excluding mexed alklarenes)
Kg.
12.5%
2902 90 40 - - Napthalene, Pure
Kg.
12.5%
2902 90 50 - - Isobuty benzene
Kg.
12.5%
2902 90 90 - - Other
Kg.
12.5%

SCHEDULES TO CENTRAL EXCISE TARIFF ACT

There are 2 Schedules to the Central Excise Tariff Act, 1985, they are:
(1)First Schedule :
The First Schedule is commonly referred to as The Central Excise Tariff.
It is selectively aligned with Harmonized System of Nomenclature (HSN),

which is an International Nomenclature and it has been adopted by 130 countries


including India for International Trade between the Member Countries.
The First Schedule to the Central Excise Tariff Act, 1985 contains 20 Sections
covering 96 Chapters, under which almost all the goods are classified / described
for the purpose of levy of Central Excise duty.
Each Sections covers several Chapters under which goods starting from Live
animals & Animal products, Vegetable products, Raw materials, Finished/Specified
goods to Miscellaneous manufactured articles are classified as follows:
Section No.

I
II
III
IV
V
VI

Chapter No.

1-5
6-14
15
16-24
25-27
28-38

Broad Description of Goods

Animal Products
Vegetable Products
Animal or vegetable fats and oils etc.,
Prepared foodstuffs; beverages etc.,
Mineral Products
Products of the Chemicals or allied Industries.

SCHEDULES TO CENTRAL EXCISE TARIFF ACT


Section No. Chapter No.
Broad Description of Goods
VII
39 & 40
Plastics & Rubber and articles thereof.
VIII
41-43
Raw Hides & Skins, Leather, Fur skins etc.,
IX
44-46
Wood and articles of wood, cork & articles etc.
X
47-49
Pulp of wood or of other fibrous cellulosic etc.
XI
50-63
Textile and Textile articles.
XII
64-67
Footwear, head gear, umbrellas Sun umbrellas etc
XIII
68-70
Articles of stone plaster, cement, asbestos etc.
XIV
71
Natural or cultured pears, precious etc.
XV
72-83
Base Metals and Articles of Base metals
XVI
84&85
Machinery & Mechanical Appliances etc.
XVII
86-89
Vehicles, air craft, vessels and associated etc.
XVIII
90-92
Optical photographic, Cinematographic, etc.
XIX
93
Arms & Ammunitions, parts & accessories there of
XX
94-96
Miscellaneous manufactured articles.
The Customs / Central Excise Tariff are designed to group all goods relating
to the same industry and all the goods obtained from the same raw material
under one chapter in a progressive manner.

SCHEDULES TO CENTRAL EXCISE TARIFF ACT


Each Section covers several Chapters and in the beginning of each Section, there is

a Note called Section Note .


Under each Chapter, there are Notes called Chapter Notes and Sub-Heading
Note and Supplementary Notes.
Show, for example, Section VI, Chapter 28 containing Section, Chapter, Sub
heading and Supplementary Notes.
These
Section Notes, Chapter Notes,
Sub-Heading Notes and
Supplementary Notes are tools for determination of classification of goods
under relevant heading / sub-heading and are legally valid for the purpose of
classification.
(2) Second Schedule:
The Second Schedule in the Central Excise Tariff Act,1985 provides for Special Excise
Duty (SED) on articles / goods specified therein.
In this Second Schedule, Heading, sub-heading, tariff item and Chapter
means respectively a heading, sub-heading, tariff and Chapter in the First Schedule.
The rules for the interpretation of the First Schedule, the Section and Chapter Notes
and the General Explanatory Notes of the First Schedule shall apply to the
interpretation of this Schedule.
However, in terms of Notification No. 9/2006-C.E. dtd 1.3.06, all the goods falling
under Second Schedule are exempted from levy of SED.

AD VALOREM AND SPECIFIC RATE OF DUTY


Objective of the Central Excise Tariff Act, 1985:
As per Section 2 of the Central Excise Tariff Act, duties of Excise (Basic
central excise duty & Special Excise Duty) are to be levied on the
goods manufactured in India at the rates specified in the First Schedule and
the Second Schedule to the Central Excise Tariff Act, 1985.
For the purpose of levy of duties of Excise, the rates are specified in the
First and Second Schedules;
Against each Tariff Heading or sub-heading or tariff item, rates of excise
duty are specified which are commonly known as Scheduled Rates of Duties
or more simply as Tariff rates.
There are two types of Tariff Rates specified in the Central Excise Tariff Act,
1985. They are (i) Ad Valorem rate of duty and (ii) Specific Rate of Duty.
Ad valorem rate of duty:
Ad valorem means @ or at the rate of
The Ad valorem rate of duty is the rate specified as a percentage at which
the duties of excise need to be levied on the value of manufactured goods.
The Ad valorem rates are specified in the first and second Schedules to the
Central Excise Tariff Act.
The rate of duty may be Nil in the Tariff itself, which is called Nil rate of
duty or Zero rate of duty.

AD VALOREM AND SPECIFIC RATE OF DUTY


II) Specific rate of duty:
Specific Rate of duty means the rate or amount of duty to be collected on
the quantum of goods i.e. , at unit rate like weight (Kg, quintal) Meter(meter,
square meter, cubic meter etc.,) piece etc.,
Refer, for example, Chapter Heading 2403
to see the distinction
between ad valorem rate and specific rate of duty.
Both ad valorem and specific rates of duty are applicable to the goods classified
under both the first and second schedules to the Central Excise Tariff Act.
Tariff Rate and Effective Rates of duty:Tariff Rate:
Against each Tariff Heading or sub-heading or tariff item, rates of excise duty
are specified which are commonly known as Scheduled Rates of Duties or
more simply as Tariff rates, also called Merit Rates.
The duty is payable at these scheduled rates/Tariff rates if there is no
exemption pertaining to the goods in question.
Effective Rate:
In cases where there are exemption notifications in relation to an article, the
actual rate of duty is to be worked out after taking into consideration the
relevant exemption notification. Such rate at which actual duty to be levied is
known as effective rate of duty.

SCHEDULES TO CENTRAL EXCISE TARIFF ACT


[Power of Central Government to amend First and Second
Schedules and the rate of duty]

A) Emergency Power of Central Government to increase the rate of


duty:
As per Section 3 of Central Excise Tariff Act, 1985, if the Central Government is
satisfied in respect of any goods that the duty leviable thereon under Section 3 of
the Central Excise Act, 1944 should be increased and that circumstances exists,
then the Central Government may, by notification in the official gazette increase
the rate of duty in the first and second schedule in respect of such a goods(i)In case of goods where the rate of duty was already Nil, the increased rate of duty
shall be not more than 50%.
(ii)In any other case, the duty will be fixed by the Central Government as it deems
fit.

B) Power of Central Government to amend First and Second


Schedules
As per Section 5(1) of the Central Excise Tariff Act, 1985,

where the Central


Government is satisfied that it is necessary so to do in the public interest, it may,
by notification in the Official Gazette, amend the First Schedule and the Second
Schedule.
Provided that such amendment shall not alter or affect in any manner the rates
specified in the First Schedule and the Second Schedule in respect of goods at
which duties of excise shall be leviable on the goods under the Central Excise Act,
1944 (1 of 1944).

Power of Central Government to exempt manufactured goods from


levy of excise duty
As per Section 5 A of the Central Excise Act, 1944, the Central Government has the power

to grant exemption, full or partial, from payment of Excise Duty in public interest either
(i) generally by issue of a notification in official gazette; or
(ii) by means of a special order in a specific case of an exceptional nature.
The rate of duty fixed by way of issued of exemption notification is called effective rate of
duty.
An exemption notification issued under Section 5 A of Central Excise Act, 1944 reads as
follows (for example in general exemption notification No. 50 dated 01.03.2013):
In exercise of the powers conferred by sub-section (1) of Section 5A of the Central Excise
Act, 1944 --------, the Central Government, being satisfied that it is necessary in the public
interest so to do, hereby exempts the excisable goods of the description specified in
column (3) of the table below ---- ,and falling within the chapter, heading or sub-heading or
tariff item of the First Schedule to the Central Excise Tariff Act, 1985, as are given in the
corresponding entry in column (2) of the said table, from so much of duty of excise
specified thereon under the first schedule to the Excise Tariff Act, as is in excess of the
amount calculated at the rate specified in the corresponding entry in column (4) of the
said table ---As an example, in respect of the goods Tobacco, used for smoking through Hookahor
chilam, commonly known as hookha tobacco or gudaku falling under chapter
2403 11 10
The tariff rate is 60%.
The rate specified in the corresponding entry in column (4) of the said table 12.5%
The portion of (excess) duty to be exempted from levy is 47.5%.
The portion of duty actually to be levied is 12.5%, which is an effective rate of duty.

INTERPRETATIVE
RULES
There are six Rules for interpretation of the

Tariff..
Rule 1 takes precedence over all the
following Rules.
Rule 1 classification to be determined by
the terms of the Heading and of the
Section or Chapter Notes.
Only where the terms of the headings or
Section/Chapter Notes do not otherwise
require, other Rules come into play.

28

Classification of Goods based on Central Excise Tariff


(2) Section Notes, Chapter Notes, Sub heading Notes and
Act,1985
Supplementary Notes:

They explain the scope of each Section and Chapter of the Tariff.
These Notes provide immense assistance in determining the classification of

goods under a particular heading or sub heading.


Section Notes, Chapter Notes, Sub heading Notes and Supplementary Notes
are also a part of the statutory tariff.
In fact, they have an overriding effect on the headings or sub heading
inasmuch as they some times expand and some times restrict the scope of the
headings and sub-headings.
The Section Notes, Chapter Notes, Sub-heading Notes and Supplementary
Notes in the Indian Customs / Central Excise Tariff Acts are based on the HSN
Explanatory Notes, which have a persuasive (credible / convincing) value.

(3) General Interpretation Rules (GIR):


General Rules for the interpretation of First Schedule to the Central Excise Tariff Act,1985 :

The GIR is a set of 6 Rules for classification of goods and these have to be

applied sequentially.
Classification of goods in the First Schedule to the Central Excise Tariff
Act,1985 shall be governed by the following principles, which are known as
Rules of Interpretation.
These are statutory Rules.

Classification-Rules
Rule 2(a)-classification of an article

referred to in a heading, even if that article


is incomplete or unfinished, or is presented
in an unassembled or disassembled form.
Example:
Railway coaches removed without seat will still be

railway coaches
A car without seat will still be classified as a car
Photocopier components in SKD / CKD conditions.

Classification-Rules
Rule 2(b)-This rule on mixture or

combination of materials or substances,


->headings in which there is a reference to a
material or substance also applies to that
material or substance mixed or combined
with other materials or substances.
Example:
The term coffee will include coffee mixed with
chicory
Natural rubber will include a mixture of
natural and synthetic rubber.

Classification Rules
Rule 3: classifying goods prima facie classifiable

under several headings.


(a)Specific over general description
(b) materials or components which give
essential character
(c)under the heading which occurs last in the
numerical order of headings which equally
merit attention
Rule 4-heading covering goods akin to such
goods
Rule 5 packing material

Interpretative Rule 3(a)


Goods should be classified in the heading giving the

most specific description.


If two or more headings, each refer to only one of the
materials or substances contained in mixed or
composite goods, or to only some of the articles
included in a set put up for retail sale, those headings
are to be regarded as equally specific in relation to
those goods.
This is so even if one of them gives a more complete
description than the other.
Example : Printer-cum-Fax, having interface with
automatic data processing unit to print as well as to fax the
matter from it, has printer as its principal function
Classification under sub-heading 8471.60 of and not under
sub heading 8517.21
33

SPECIFIC vs GENERAL
Description by name is more specific

than description by class


Description which more clearly identifies
them where identification is less
complete.

34

Interpretative Rule 3(b)


To apply only if Rule 3(a) fails for --

-Mixtures
-composite goods consisting of
different materials,
-composite goods consisting of
different components;
-goods put up in sets for retail sales
-To be classified in the heading
appropriate to the material or
component which gives them their
essential character
35

Test of essential
character??
Vary between different kind of goods.
Nature of the material

Nature of the component


Bulk Quantity Weight or Value
Role of a constituent material in relation to use of

the goods.

36

Interpretative Rule
3(c)
Applicable for goods not classifiable in terms of Rule

3(a) or 3(b).
Goods should be classified in the heading which
occurs last in numerical order amongst those which
equally merit consideration.

37

Interpretative Rule 4
Goods which are not specifically covered by any

heading (e.g. because they have newly appeared on


the world market)
Shall be classified in the heading appropriate to the
goods to which they are most akin.

38

Interpretative Rule 5(a)


Governs classification of cases, boxes and similar

containers presented with the articles for which they


are intended.
Shall be classified with such articles when of a kind
normally sold therewith.
This rule will not apply to containers which give the
whole the essential character.

39

Interpretative Rule
5(b)
Governs classification more generally to packing

containers presented with the goods they hold.


To be classified with the goods, if they are of a kind
normally used for packing such goods.
This will not apply where they are suitable for
repetitive use.

40

Interpretative Rule 6
Sub-headings of a Heading
According to the terms of the subheadings.

Related sub-heading notes.

In terms of the above Rules.

Sub-headings at the same level are


comparable.

Within a single heading, the choice of a

single dash sub-heading may be made


Only on the basis of the texts of
the competing single dash sub-headings.
41

Classification of Goods based on the Central Excise Tariff


Act

The nomenclature of the goods in the Central Excise Tariff Act,


1985 has been formulated as below:

Tariff
Item
2403

Description of Goods

Rate of Duty
Unit

Other Manufactured Tobacco


tobacco substitutes etc.
-

&

Manufactured

Smoking
Tobacco,
whether
containing
substitutes in any proportion:

or
not
tobacco

2403 11

- - Water pipe tobacco specified in sub heading


note to this chapter.

2403 11 10

- - - Hukkah or gudaku tobacco

Kg

60%

2403 11 90

- - - Other

Kg

60%

2403 19

- - Other

2403 19 10

- - - Smoking mixtures for pipes and cigarettes

Kg

360%

- - - Biris
2403 19 21

- - - - Other than paper rolled biris, manufactured


without the aid of machine

Tu

Rs.12 per thousand

2403 19 29

- - - - Other

Tu

Rs.30 per thousand

2403 19 90

- - - Other

Kg

40%

Classification of Goods based on the Central Excise Tariff


Act
The nomenclature of the goods in the Central Excise Tariff Act,
1985 has been formulated as below:
Tariff Item

Description of Goods

Unit

Rate of Duty

- Other:
2403 91 00

- - Homogenised or re-constituted tobacco

Kg

60%

2403 99

- - Other:

2403 99 10

- - - Chewing Tobacco

Kg

70%

2403 99 20

- - - Preparations containing chewing tobacco

Kg

60%

2403 99 30

- - - Jarda scented tobacco

Kg

70%

2403 99 40

- - - Snuff

Kg

60%

2403 99 50

- - - Preparations containing snuff

Kg

60%

2403 99 60

- - - Tobacco extracts and essence

Kg

60%

2403 99 70

- - - Cut-Tobacco

Kg

Rs.70 per Kg

2403 99 90

- - - Other

Kg

70%

SIGNIFICANCE/PURPOSES OF DASHES
In Column 1 of the first scheduleHeading, in respect of goods, means a description in the list of tariff provisions
accompanied by a four-digit number and includes all sub-headings of tariff items, the
first four-digits of which correspond to that number.
Sub-heading, in respect of goods, means a description in the list of tariff provisions
accompanied by a six digit number and includes all tariff items, the first six-digits of
which correspond to that number.
Tariff item means a description of goods in the list of tariff provisions accompanying
either eight digit number and the rate of duty of excise or eight digit number with
blank in the column of the rate of duty.
In column 2 of the first schedule, there are dashes like single dash( - ), double dashes
(- -), triple dashes ( - - - ) and quadruplicate dashes ( - - - - ) which precede an article or
group of articles.
After the single dash ( - ), an articles or group of articles are classified under a
heading of a particular Chapter.
After the double dashes ( - - ), the description of an article or group of articles shall be
taken as sub classification (under a sub-heading) of the preceding description of the
article or group of articles which has single dash ( - ) against a heading.
Where the description of an article or group of articles is preceded by triple dashes ( - - ) or quadruplicate dashes (- - - - ), the said article or group of articles shall be taken
to be a sub classification (under a further sub heading) of the immediately preceding
description of the article or group of articles which has single dash ( - ) or double
dashes ( - - ) under a heading / sub headings.

Division of Headings
Heading further sub-divided into

-One
the
-One
the
-One
the
-One
the

or more Single dash sub-heading of


Heading
or more Double dash-- sub-heading of
single dash sub-heading
or more Triple dash---sub-heading of
double dash sub-heading
or more Four dash----sub-heading of
triple dash sub-heading
45

Exercises
Hyundai Verna

Leaf springs

Xylo (diesel), Tyres

Radiators

Alto 800, I10

Deodarant

Pulsar Bike, Tyres.

Coke/ Pepsi

Bullet enfield

Petrol / Diesel

Gear box

Pressure cooker

Fasteners bolts nuts

Coffee instant

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