Principles of classification :
Classification is to be done on basis of entries in Tariff. However, there are some general principles of classification.
Words used in tariff are to be understood in the sense these are understood in the trade. This is ‘trade parlance theory’. The trade parlance is more important than dictionary or technical meaning, unless the word is specifically defined in the tariff itself.
HSN is very important guide in classifying a product and it should be normally followed.
End use is generally not relevant for classification except when the tariff description so requires and classification is relating to function of the product.