Are Playing Cards Sports Goods?
YES, says the Supreme Court.
As per Central Excise Notification No. 02/2011-CE, dt.01.03.2011, there is a concessional rate of duty for Sports goods other than articles and equipments for general physical exercise.
Now, the question is whether ‘playing cards' are eligible for the above exemption.
The arguments of the learned Counsel for the cards in a case before the Tribunal were:
1. Bridge tournaments were sponsored by the Sports Authority of India and the Government had financed holding of such competitions.
2. Trophies were also awarded to the winners of Bridge tournaments out of Government funds.
3. Referring to the definitions of Games and Sports in several dictionaries, these terms were inter-changeable and did not limit themselves to sports or games involving strenuous physical activity but also covered parlour games and games requiring exercise of intellect.
4. Tribunal had earlier held that rubber playing balls could not be excluded from the description 'sports goods'.
Revenue maintained that the term 'sports goods' should cover only those articles which involved physical activity and would not cover articles of amusement such as playing cards.
Recently in 2014-TIOL-1274-CESTAT-AHM, the CESTAT held that ‘playing cards' are eligible for the exemption.
Revenue was not game - they took the matter in appeal to the Supreme Court. The Apex Court last week dismissed the Revenue Appeal observing, "Having gone through the records of the case, we are of considered opinion that the appeals, being devoid of any merit, are liable to be dismissed and, are dismissed accordingly."