TMI Blog2019 (3) TMI 1136X X X X Extracts X X X X X X X X Extracts X X X X ..... tion therein. No question of confiscation at all arises - Appeal allowed - decided in favor of the assessee. - Excise Appeal No. E/54520 & 54187/2014 [DB] - FINAL ORDER NO. 50402-50403/2019 - Dated:- 20-3-2019 - MR. C.L. MAHAR, MEMBER (TECHNICAL) And MRS. RACHNA GUPTA, MEMBER (JUDICIAL) Present for the Appellant: Mr. A.K. Prasad Ms. Priyanka Goel, Advocates Present for the Respondent: Mr. R.K. Mishra, A.R. ORDER PER: RACHNA GUPTA The appellants having their factory at Ring Road, New Delhi are interalia engaged in the manufacture of Sand Lime Fly Ash Bricks. Shri Rajesh Gupta is the Managing Director of the appellant company. The departmental officers carried out searches at the factory premises of the appellants on 22.10.2012 and apart from seizing some records, they also seized 1,96,160 pieces of the said Sand Lime Fly Ash Bricks valued at ₹ 7,84,640/- holding the goods to be classifiable in tariff head at 68159910 and denying the benefit of General Exemption Notification No. 48 and that of Notification 1/2011-CE dated 01.03.2011. That the confiscation of these bricks alongwith penalty upon company was proposed vide SCN No. 1206 dated 18.04.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and perusing the entire record, we observe and hold as follows: 5.1 The disputed article is admittedly a brick. Whether the appellant has rightly classified as other sand and lime brick under tariff heading 6810 precisely 68109990 and has rightly claimed the benefit of Notification No. 1/2011 or it is fly ashbrick under tariff entry 6815 precisely 68159910, is to be adjudicated. For the purpose, relevant tariff entries are as follows: Tariff item Description of goods Unit Rate of duty (1) (2) (3) (4) 6810 Articles of cement, of concrete or of artificial stone, whether or not reinforced - Tiles, flagstones, bricks and similar articles 6810 11 -- Building blocks and bricks 6810 11 10 --- Cement bricks Kg 14% 6810 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icks and tiles of fly ash Kg 14% 6815 99 20 --- Sanitary wares, kitchen wares and other made up articles of fly ash Kg 14% 6815 99 90 --- Other Kg 14% Department has alleged the impugned bricks are classifiable under 68159910 where there is no mention of sand and lime. 5.2 Admittedly the impugned brick s components are sand and lime and fly ash as well. Thus, description of goods herein seems to be overlapping in two categories. Hence, it is necessary to understand the Rules of Interpretation. The same reads as follows: THE FIRST SCHEDULE -EXCISE TARIFF (See section 2) GENERAL RULES FOR THE INTERPRETATION OF THIS SCHEDULE Classification of goods in this Schedule shall be governed by the following principles: 1. The titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.3 From the record specifically the statements recorded during the investigation it is apparent, without any denial of department, that appellant company was initially engaged in manufacturing of mechanised autoclaved sand and lime bricks. However, from 1990 fly ash products were sought to be strongly promoted both by Government and the Hon ble Supreme Court and the High Court to address the twin concerns of tackling a huge environmental pollutant menace of fly ash that various GOI/MOEF Extra Ordinary Gazettes were issued making the use of fly ash products mandatory for all construction activities. To ensure implementation of these directives, Government has also been giving various incentives to promote fly ash products apart from various coercive actions, including waiving off of excise duty etc. It is thereafter that with lot of R D and after investment of lot of resources appellant developed technology to add fly ash to their basic product i.e. mechanised autoclaved sand lime bricks and started producing mechanised autoclaved sand lime fly ash bricks. Thus, their major raw materials used in the manufacture were Sand and Lime and Fly Ash was only added in their product as a f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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