By TIOL News Service

CHENNAI, JUNE 10, 2014: THE difference of opinion order was reported earlier vide 2014-TIOL-253-CESTAT-MAD, wherein the issue of classification of certain items manufactured by Funskool was referred to Third Member due to difference of opinion between the two Members. The majority order has been delivered by the Tribunal recently.

The issue under dispute is regarding classification of the following items:

1 Chip N Dale

2 Duck Tale Disney

3 Fox and Geese

4 Rally

While Member (J) classified the above items under CETH 9503 .00, the Member (T) opined that, held that these have no educational value and are in the nature of Monopoly / Snake and ladder / Draughts or Chess and do not satisfy the criteria laid down by the Apex Court for toys. Accordingly, the said four items are classifiable under Heading 9504.90.

After hearing both sides, the Third Member held:

The contention of the appellant is that since in Chip N Dale, Duck Tale Disney and Rally, there is no element of skill and outcome of these games is dependent only on chance, these games are purely for amusement of children and hence the same have to be treated as toys covered by Heading 95.03. This plea of the appellant is not correct. While the Apex Court in the case of Pleasantime Products Vs. CCE Mumbai-I has held that Scrabble, whether Junior Scrabble or Senior Scrabble, is a game classifiable under Heading 95.04, it has also upheld the classification of Snakes & Ladders under Heading 95.04, though on this point there is no discussion in the order, as appellant themselves had conceded its classification under Heading 95.04. The appellant have not contested the classification of Snakes & Ladders under 9504.90 as in term of HSN Explanatory Notes to Heading 95.04 Boards and Pieces (Chessman, draughtsman, etc.) for games of chess, draughts, dominoes, mah - jong , halma , ludo , snakes and ladders etc. are covered by Heading 95.04 and Heading 95.04 of the Central Excise Tariff during the period of dispute was identical to the HSN Heading 95.04. The products, in question - Chip N Dale, Duck Tale Disney and Rally, are, as discussed above, very much like the games of Ludo and Snakes & Ladders which are the board games and wherein the move of each player is determined by the outcome of the dice or spinner. When in terms of HSN Explanatory notes, such games are covered by HSN Heading 95.04 and when Heading 95.04 of Central Excise Tariff is identical to HSN Heading 95.04 and there is no different intention indicated in the Tariff, as discussed in para-44 and 44.1 above, the ratio of the Apex Courts judgment in the case of CCE Vs. Wood Craft Products Ltd. and CCE Hyderabad Vs. Backlite Hylam Ltd. would be applicable and HSN explanatory notes would have to be followed for determining the classification of the products in question in the Central Excise Tariff. The products, in question, therefore would be correctly classifiable as board games under sub-heading 9504.90.

Thus, by majority order, the Tribunal classified the four items under dispute under CETH 9504.90.

(See 2014-TIOL-983-CESTAT-MAD)