Explanatory Notes to the HSN :

(i) Official notes issued by the Customs Co-operation Council: The Explanatory Notes to the HSN are the official notes issued by the Customs Co-operation Council, Brussels.

(ii) Explain and clarify the scope of headings of HSN: They explain and clarify the scope and extent of each and every heading of the HSN, on the basis of which the present Central Excise Tariff has been patterned.

(iii) Do not have a legal backing-are only of persuasive value: It is to be remembered that the Explanatory Notes do not have legal backing, unlike the Chapter Notes and Section Notes contained in the Tariff. Consequently, these Explanatory Notes are only of persuasive value and can be used as an aid to classification of goods when there is ambiguity as to the scope of the entry.

(iv) Can be resorted to only in case of ambiguity in tariff items in Central Excise Tariff

•  HSN explanatory notes can be resorted to in case of ambiguity in classifying goods.
•  When there is no ambiguity about the scope of the entry, the classification has to be done as per the tariff entry itself.

Relevant case law

The Larger Bench of Tribunal held that HSN notes can be brought into picture only when there is doubt or ambiguity about scope of any tariff entry and if tariff entry itself is clear, no external aid is necessary or permissible for determining its scope. Explanatory Notes in HSN are to be invoked only if there is ambiguity in tariff items in Central Excise Tariff.

[G.M. Pens International Ltd. v. CC (Sea Port), Chennai, 2005 (187) E.L.T. 180 (Tri. – LB)]

Illustration Product: Hot air generators First Heading: 7322 “Radiators for central heating, not electrically, heated, and parts thereof, or iron or steel; air heaters and hot air distributors which can also distribute fresh or conditioned air, not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel.” Second Heading: 8419 “Machinery, plant or laboratory equipment whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes, instantaneous or storage water heaters, non-electric.” Classification of hot air generators: Heading no. 7322 expressly covers air heaters. Since the said tariff entry is clear about the scope, the hot air generators are classifiable under the heading 7322 and there is no need to refer to Explanatory notes to HSN.