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2015 (4) TMI 455

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..... is General Interpretation Rules which are applicable. We find that as per Note 3(b) of the General Interpretation Rules, the test is essential character of the product and in the facts of the present case it is to be examined as to whether the said essential character is that of plastic or the limestone. - Though no technical material was placed by either side before the Courts below, the CEGAT noted that use of limestone to the extent of 84.10% and use of plastic only as a binder clearly indicated that characteristic of lime stone that confers upon the material its use, in the present case. We may also remark that the Department could not produce any evidence in support of its contention that the goods are known as plastic tiles in the ma .....

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..... product is to be classified under heading 3918.10. On this basis differential amounts of excise duty in the sum of ₹ 15,43,1679.55 and 13,48,149.00 respectively were demanded The respondent contested the aforesaid show cause notices and reiterated its position that the goods were rightly classified under Chapter 68 sub-heading 6807. The Order-in-Original passed by the Assistant Commissioner on 27.3.1996 did not accept the aforesaid contention of the respondent and confirmed the demand raised in the show cause notices by classifying the product under sub-heading 3918.10. The respondent preferred appeal against that order before the Commissioner (Appeals) and succeeded in as much the appeal of the respondent was allowed by the order .....

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..... rules. To this extent Assistant Commissioner was right and even CEGAT has accepted this position. However, thereafter, as the reading of the order suggests, the Assistant Commissioner noted that the floor tiles manufactured by the respondent consist of a thoroughly branded composition of thermo plastic binder asbestos fiber and filter pigments. The order of the Assistant commissioner also shows that in the test conducted by the Department the percentage of plastic (PVC) which was found was as low as 13.3% while the content of limestone was as high as 84.9%. It has also come on record that the plastic was primarily used as a binder. Even after noticing these facts, the only consideration which weighed with the Assistant Commissioner was t .....

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..... roduct under ch. 39 verbatim from the order of the Assistant Commissioner in case of Bhor Industries Ltd which was set aside by the Commissioner C.Ex (Appeals), and also from the Affidavit filed by the department in the Hon'ble Supreme Court against the order of the Hon'ble Gujarat High Court in case of the same appellants. The only supports the view the that the appellants case is similar to that of Bhor industries. Thus the essential character of the tiles is imparted by the materials falling under Chapter 68 and not by plastic materials falling under Chapter 39. The view is further reinforced by the inspection of the samples produced by the appellants. It is seen that whereas the vinyl asbestos tile was prone to breakage with .....

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