9911796707
TMI Blog2006 (4) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant-Company is engaged in manufacture of flooring cement tiles using cement, sand, blue metal and gravel along with pigment. These are in the form of tiles used for constructing the floor itself or the wall, as the case may be. 3.The appellant-Company filed classification list claiming the benefit of Notification No. 59/90-C.E. on the ground that the cement tiles in question are not floor coverings in rolls or in the form of tiles as per the description against serial No. 4 of sub-heading 6807.00 of the Table annexed with the Notification. The Superintendent of Central Excise, Range-IXA, Madras, IX Division, issued a show cause notice dated 6th November, 1992 to the appellant-Company (hereinafter referred to as the "assessee-Company") ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of the Notification has been rightly extended to the Company. 5.Being aggrieved against the order of the appellate authority, the Revenue filed an appeal before the CEGAT. The Member (Technical) of the CEGAT has found no infirmity or perversity in the said order and dismissed the appeal of the Revenue, but the second Member (Judicial) has recorded separate order differing with the order of Member (Technical) and set aside the order of the appellate authority. 6.The matter came to be referred to the third Member for solving the difference of opinion between the Members of the Bench. The third Member (Technical) agreed with the views expressed by Member (Judicial) and accordingly the appeal filed by the Revenue was accepted and the bene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecified in column (3) of the Table annexed thereto and under Sub-heading No. (3) of the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) specified in column (2) of the said Table, from so much of that portion of the duty of excise leviable thereon which is specified in the said Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table. Table of the Notification, relevant for the purpose of deciding the present appeal, reads as under:- Table Sl. No. Sub Heading No. Description of goods Rate of Duty 1. xxx xxxx xxx 2. xxx xxxx xxx 3. xxx xxxx xxx 4. 6807.00 All goods excluding the following, namely :- 15% ad valorem (i) F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with pigments and then the mixture was poured into moulds, compacted and allowed to set automatically through vibration table. The adjudicating authority further noticed that the cement tiles were demoulded, cured, surface treated and are marketed in the brand name of Eurocon tiles. These tiles are capable of using for wall application of both external/internal wall tiling, which form an integral part of the wall on which they are cemented. The adjudicating authority also studied the product in question with reference to its characteristics, temperature resistance, structural properties and durability. The authority has also perused Section Notes/Chapter Notes of Chapters 39, 57, 59 and 68 dealing with the goods floor covering and floorin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay akin to floor covering materials and these are covered within the nomenclature of 'floor tiles' and, therefore, the assessee-Company is entitled to the benefit of Exemption Notification No. 59/90. 11.The appellate authority as noticed earlier has confirmed the order of the adjudicating authority and held that the cement tiles in question are not "floor coverings' and the benefit of the notification has been rightly extended to the assessee-Company. The Member (Technical) of the CEGAT has also come to the conclusion that the cement tiles in question are flooring materials and become constituent part of the floor or wall or stairways. These tiles cannot be termed as 'floor coverings'. In support of his findings, the Member (Technical) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same sub-heading. In that case the product manufactured by the Company was used as floor coverings' inasmuch as the tiles were placed on the floor covering the cable running underneath the floor. Thus, the findings of the Tribunal in the Niraj Cement case (supra) cannot be uniformly applied to the products in question manufactured by the assessee-Company. 12.In the facts and circumstances narrated hereinabove, the noted contentions of the learned Additional Solicitor General do not merit acceptance. The objection of the Revenue that the cement tiles manufactured by the assessee-Company are covered under the expression "floor coverings in rolls or in the form of tiles" is misconceived. 13.We, therefore, hold that as per the trade underst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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