In Brief
The Supreme Court was asked whether car matting should be classified as a textile floor covering under Chapter 57 or as vehicle parts under Chapter 87 of the Central Excise Tariff Act, 1985. The Court held that while consumer perception is relevant to classification disputes, the intrinsic nature of goods—not artificial 'market tests'—determines tariff entry. Car matting, being fundamentally a textile product, belongs under Chapter 57, not as vehicle parts under Chapter 87. The Tribunal's decision was upheld and the appeals were disposed.
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