Motivated by the application problem of sensor fusion the author introduced the concept of graded set. It is reasoned that in classification problem arising in an information system (represented by information table), a novel set called Granular set naturally arises. It is realized that in any hierarchical classification problem, Granular set naturally arises. Also when the target set of objects forms a graded set the lower and upper approximations of target sets form a graded set. This generalizes the concept of rough set. It is hoped that a detailed theory of granular/ graded sets finds several applications.