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Commissioner of Central Excise, Chennai-IV Versus M/s Kent Ceramic Tiles And Co Pvt Ltd

2015 (9) TMI 927 - CESTAT CHENNAI

Classification of goods - ceramic tile - smaller pieces ( cubes of various sizes and shapes) manufactured and affixed to a sheet (craft paper) - switching over to Chapter 68 from Chapter 69 - assessee earlier classified the goods under Tariff 6905.10 - after the decision of the Tribunal in the cases of Shon Ceramics Pvt. Ltd. Vs. Collector of Central Excise - [1990 (11) TMI 219 - CEGAT, NEW DELHI] and Collector of Central Excise Vs. Shon Ceramics Pvt. Ltd. - [1996 (3) TMI 222 - CEGAT, NEW DELHI] .....

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. Shon Ceramics not opposed by Revenue. Tribunal having examined very carefully the composition of the cubes which are ultimately pasted on kraft paper to give raise to the goods in question, both the decisions of the Tribunal when appealed by Revenue before the Apex Court, those were dismissed as reported in [1997 (9) TMI 608 - SUPREME COURT] finding no discrepancy in the ratio laid down by the Tribunal. - Revenue's appeal fails on merit. - Decided against Revenue. - E/941/2003 & E/CO/53/2004 - .....

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decision of the Tribunal in thecases of Shon Ceramics Pvt. Ltd. Vs. Collector of Central Excise - 1991 (52) ELT 608 and Collector of Central Excise Vs. Shon Ceramics Pvt. Ltd. - 1996 (84) ELT 502 and Notification No.8/2002 dated 1.3.2002, it changed its classification to Tariff Heading 6807.10. 1.2 In view of above contention of revenue, the goods falling under the Tariff Heading 6807 and 6807.10 needs to beexamined. That reads as under:- Heading No. Sub-heading No. Description of the goods Rate .....

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mpeting entry of Chapter 69 and Tariff heading6905 claimed by Revenue reads as under:- Heading No. Sub-heading No. Description of the goods Rate of duty (1) (2) (3) (4) 6905 Unglazed ceramic flags and paving, hearth or- wall tiles; unglazed ceramic mosaic cubes and the like, whether or not on a backing 6905.10 - Vitrified tiles, whether polished or not 16% 6905.20 - Other 16% 3. Revenue submitted that the mod us operandi of the assessee was to take advantage of the benefit of SSI exemption notif .....

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ods of the respondent.Assessee manufactured cubes of various sizes and shapes.Those were affixed to a sheet (craft paper) to meet to the requirement of buyer. According to the description of goods,that falls under Chapter 69 as per meaning given by HSN under entry 6907 as per HSN Note reading as under:- 69.07 - UNGLAZED CERAMIC FLAGS AND PAVING, HEARTH OR WALL TILES; UNGLAZED CERAMIC MOSAIC CUBES AND THE LIKE, WHETHER OR NOT ON A BACKING. 6907.10 - Tiles, cubes and similar articles, whether or n .....

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the argument on classification issue. In para 7 of the decision it is recorded as under: - "7.Regarding Chapter Note 2 he submits that this Chapter Note only restricts coverage of Chapter 69 and does not enlarge it. In other words, it only means that those products which had been fired before shapping will specifically go out of the chapter.Mosaic tiles can get covered both under Chapters 68 and 69. Reacting to the emphasis laid by the Ld. D.R. on the products being 'ceramic', he su .....

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arrived at by the Collector (Appeals) with reference to Chapter Note 2 of Chapter 69. Even though Assistant Collector relying on a letter dated 2-6-1986 enclosing the flow chart of the product in respect of process of manufacture arrived at a finding that the products are fired after being pressed i.e. shaped and leaded. Ld. Collector (Appeals) arrived at contrary finding. This finding of facts arrived at by Collector was not based merely on his own opinion but he had looked into the flow chart .....

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they ought to have produced adequate evidence for this since it was a Revenue Appeal. As it is the Revenue have not produced even the flow chart on which the Assistant Collector relied." [Emphasis supplied] 6. Tribunal has rightly interpreted the meaning of the term 'ceramic' used in Chapter 68 and 69 on the context of HSN Note in para 7 of its decision. That is exactly the goods cleared by Respondent and Respondent's products are same as that of Shon Ceramics. Chapter Note 2 o .....

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n for classifying mosaic tiles under Chapter 69. Perusal of the HSN Explanatory Notes 912, 899, 903 also indicates that the qualifying word "Ceramic" by itself is not decisive of the issue since the word occurs in relation to the products both under Chapter 68 and Chapter 69 and indeed appears in Chapter68 itself in the Heading 68.01." [Emphasis supplied] 7. Careful reading of para 8 of the decision throws light on characteristics of the goods. The use of the word 'ceramic' .....

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eads as under:- "9. Since these mosaic tiles can be classified under Chapters 68 and 69 we have to see in the circumstances of the case which is the proper chapter which would cover it. The products are made of 80% of the various stones, such as Quarts, silica and Feldspar chips and 20% or less clay material for binding purpose. Chapter 69 and the Note 2 applies only to ceramic products which have been fired after shaping. Assistant Collector has made the following observations: "In th .....

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ctor (Appeals) has given a definite finding in regard to the stage at which the products are shaped. "The Appellants argued that articles which are required to be fired do not necessarily fall under Chapter 69. I agree with this contention of the appellants. The flow chart referred to by the Assistant Collector does not state that firing is done after shaping. The Assistant Collector has treated the process of 'pressing' as shaping. In fact 'shaping' which appellants call &q .....

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