Jyoti Balasundaram, Member (J)

1. Both the appeals involve a common question and are hence being disposed of by a common order.

2. The issue for consideration in these appeals is the classification of educational audio picture cards imported by the appellant.

3. The facts of the case leading up to the appeal are as follows:-

The appellant which is a small scale manufacturer carrying on the business of manufacturing electronic teaching aids, imported a product called "Talk N' Teach", comprising of a small machine and complimentary cards. The first consignment of these "educational audio picture cards" was cleared under Heading 49.03 of the Customs Tariff Act without payment of any Customs duty. The 2nd consignment was classified under Tariff sub-heading 4911.99 both by the Assistant Collector and the Collector (Appeals), rejecting the appellant's claim for reassessment under Heading 49.03 as "Children's picture, drawing or colouring books". C/Appeal No. 2703/88-C has been filed against the order of the Collector (Appeals), classifying the import under Tariff sub-heading 4911.99.

4. The 3rd consignment was classified by the Assistant Collector under subheading 8524.21, while the Collector (Appeals) re-classified them under heading 8524.90 as 'other recorded phenomena'. C/Appeal No. 187/89-C has been preferred against this order of the Collector (Appeals).

5. Shri Devan Parikh, learned Counsel for the appellant states that the product is a collection of educational visual cards, which can be termed, 'flash cards', containing a pictorial depiction in alphabetical order. Each card contains a magnetic tape running along the length of the card in a line below the picture and lettering and when inserted in the recorder, it becomes an audio-visual card. The product is of high educational value and it is the picture and letters/words/sentences on it that give the card its inherent character. According to him, the presence of magnetic tape does not in any way alter the basic character and purpose of the cards as educational picture cards. He submits that the entire card with tape is sought to be classified as magnetic tape under Chapter 85 which cannot be done on the basis of one component, namely the tape. According to him, the cards with picture and lettering can be used without the tape, which merely gives the cards a new flavour. He submits that the basic product is the card which is only modified by addition of the tape. To support his contention that it is the basic product alone which determines classification, he relied upon the decisions reported in :-

1. 1978 (2) E.L.T. J 160 - W.S. Insulators v. U. O.I.

2. 1979 (4) E.L.T. J 9 - Mill Stores (P) Ltd. v. U. O.I.

3. 1979 (4) E.L.T. J 36 - English Electric Co. v. U. O.I.

4. 1981 (8) E.L.T. 334 - Central Camera Co. v. U.O.I.

6. Shri Parikh contends that the goods imported cannot fall under Chapter 85 just because of the presence of a magnetic tape as the essential characteristic of flash cards is given by printing and, therefore, the goods are rightly classifiable under Chapter 49 as products of the printing industry.

7. On the aspect of how the product is understood in the market, learned Counsel submits that as the product is not manufactured in India, guidance is to be sought from international trade parlance which treats the product as an educational work book. He takes us through the product catalogues and a letter dated 5-4-1987 from the foreign supplier to emphasise that the product is a children's picture book. He also drawn our attention to the definition of "book" as contained in Section 1 of the Press & Registration of Books Act, 1867 which defines "book" as including 'any volume part or division of a volume, and pamphlet, in any language, and every sheet of music, map, chart or plan separately printed" and the meaning of the word "book" as found in Mitra's 'Legal Maxims' and Stroud's "Judicial Dictionary". According to him, the product which is a compilation of cards having log