2025 (7) TMI 1089 - AT - Customs

Eligibility of benefit of N/N. 12/2012 (Sl. No. 54) dated 17.03.2012 to the goods imported - Travertine Slabs - denial of exemption on the ground that the benefit of the said Notification is available only to marble slabs and tiles whereas the imported item is Travertine which is different from marble and hence not eligible for exemption from duty - HELD THAT - The benefit of concessional rate of duty is made available to polished marble slabs of Tariff heading 68022190 not extended in the earlier Notification No. 4/2006- CE dated 01.03.2006. Thus w.e.f. 17.03.2012 goods falling under Chapter sub- heading 68022190 made eligible to the benefit of the said Notification. In the present case the Revenue even though does not dispute the fact that the imported goods are classifiable under CTH 68022190 but not eligible to the benefit of Notification No. 12/2012 since Sl. No. 54 of the said notification describes the goods as marble slabs and tiles therefore Honed/Semi Polished Marble - Travertino Titanium Silver Beige Colour etc. since do not match with the said description of the goods mentioned in the notification accordingly inadmissible to the benefit of concessional rate of additional duty of customs i.e. CVD. There are merit in the contention of the learned Advocate for the appellant when the Notifications No. 04/2006-CE and 12/2012-CE are read in juxtaposition. Earlier the entry 68022190 was conspicuously absent under Notification No. 04/2006-CE whereas it has been inserted under Notification No. 12/2012-CE on representation from the trade as mentioned in the TRU letter dated 16.03.2012. Travertines are varieties of calcareous stone like marble. Further reading the Chapter sub heading 6802 it can be noticed that sub-heading 6802.21 is applicable to Marble Travertine and Alabaster; the classification of Marble Blocks or Tiles be under 6802 2110; other Marble Monumental Stones under 68022120; and all others would fall under sub- heading 68022190. Thus Travertine since not specifically mentioned either under sub-heading 68022110 or 68022120 hence it is ought to be classifiable under sub-heading 68022190 and the said entry is specifically included in the Notification No. 12/2012-CE dated 17.03.2012 - there are no merit in the observation of the learned Commissioner when the Department has not disputed the classification of Travertine under CTH 68022190 in denying the benefit of the Notification No. 12/2012-CE to the imported goods viz. Marble Slabs (Honed/Semi Polished) Travertine Ext Beige Colour . Also reading the definitions it is clear that marble is the genus and Travertine is species a kind of marble. There are no merit in the impugned orders the same are set aside - appeal allowed.

Summary

ISSUES:

Whether the imported goods described as "Honed/Semi Polished Marble Slabs – Travertino Titanium – Silver Beige Colour" classified under CTH 68022190 are eligible for concessional rate of Additional Duty of Customs (CVD) benefit under Sl. No. 54 of Notification No. 12/2012-CE dated 17.03.2012.Whether 'Travertine' is a distinct category from 'marble' for the purposes of Customs Tariff classification and exemption notifications.Whether the benefit of concessional rate under Notification No. 12/2012-CE can be denied on the ground that the goods are 'Travertine' and not 'marble slabs and tiles' as described in the notification.Whether extended period of limitation, confiscation, and penalties under the Customs Act, 1962 are sustainable in the absence of wilful mis-declaration or suppression of facts.

RULINGS / HOLDINGS:

The imported goods classified under CTH 68022190 as "Marble slabs (Honed/Semi Polished) Travertine Ext Beige Colour" are eligible for the concessional rate of CVD benefit under Sl. No. 54 of Notification No. 12/2012-CE dated 17.03.2012, as "Travertine" is a variety of marble and falls within the scope of the description "marble slabs and tiles."'Travertine' is recognized as a species within the genus 'marble' based on the HSN explanatory notes and authoritative mineralogical definitions, and thus is covered under the tariff heading 68022190 included in the notification.The denial of benefit on the basis that the goods are 'Travertine' and not 'marble slabs and tiles' is unsustainable, particularly given that the Department does not dispute classification under CTH 68022190 and the TRU clarification letter dated 16.03.2012 supports inclusion of heading 68022190 for concessional benefit.There is no sufficient evidence of wilful mis-declaration or suppression of facts to invoke extended period of limitation, confiscation under Section 111(m), or penalties under Sections 114A, 114AA, and 112(a) of the Customs Act, 1962; hence, such penalties and confiscation are not sustainable.

RATIONALE:

The Court applied a combined interpretation of Notification No. 4/2006-CE and Notification No. 12/2012-CE, noting that the latter specifically inserted tariff heading 68022190 to extend concessional benefit to polished marble slabs previously not covered.The Court relied on the Harmonized System Nomenclature (HSN) explanatory notes which describe marble as a hard calcareous stone capable of taking polish and identify Travertine as a variety of calcareous stone within the marble family.Authoritative mineralogical sources including the Indian Minerals Yearbook 2013 were considered, which define marble as a genus and Travertine as a species thereof, capable of taking polish and commercially treated as marble.The Court gave weight to the Trade and Revenue Unit (TRU) letter dated 16.03.2012 clarifying that exemption applies to goods covered by the description and tariff headings, including 68022190, thereby supporting a purposive and non-restrictive interpretation of the exemption notification.The Court rejected the Revenue's strict literal interpretation that excludes Travertine, emphasizing that the description "marble slabs and tiles" encompasses varieties like Travertine which are commercially recognized as marble.The Court noted precedents emphasizing that exemption notifications should be interpreted in favor of the assessee where the goods fall within the description and classification, and that the burden of proving ineligibility rests on the Revenue.Penalties and confiscation require proof of wilful mis-declaration or suppression, which was not established; hence, extended period of limitation and penalties were disallowed.