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TMI Blog2009 (3) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... , including aerated or cellular light weight concrete blocks and slabs'. When the above Notification was superseded by Notification No. 10/2006-C.E., dated 1-3-2006, they continued to avail the above benefit in terms of serial No. 9 of the Table annexed to the new notification, whereat the effective rate of duty prescribed was 8% for 'solid or hollow building blocks including aerated or cellular light weight concrete blocks and slabs, falling under Chapter '68 (except headings 6804, 6805, 6811, 6812, 6813)' of the CETA Schedule. The department issued a show-cause notice dated 17-8-2006 to M/s. Conwood proposing (a) to revise the classification of their paver blocks as 'solid concrete blocks other than building blocks' under sub-heading 6810 99 90; and (b) to deny them the benefit of Notification No. 10/2006-C.E. The party contested these proposals on numerous grounds. In adjudication of the dispute, the original authority confirmed the proposed classification of paver blocks and denied the benefit of Notifications 10/2003 and 10/2006 to the assessee. The order passed by the original authority was set aside by the Commissioner (Appeals) in an appeal filed by M/s. Conwood. The order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved by Notification No. 2/2005-C.E., dated 24-2-2005 which came into force on 28-2-2005. Accordingly, it was permissible for those who claimed the benefit of concessional rate of duty under serial No. 23 of Notification No. 10/2003-C.E. to substitute for Heading 68.07, the corresponding heading under the 8 digit system, which was brought into effect on 28-2-2005 by the Central Excise Tariff (Amendment) Act, 2005. Broadly it can be said that the amending Notification No. 2/2005-C.E. ibid changed Heading 68.07 (6 digit system) to Heading 6810 (8 digit system) in column No. 2 against serial No. 23 of column No. 1, in the Table annexed to Notification No. 10/2003-C.E. w.e.f. 28-2-2005. After Notification No. 10/2006-C.E., dated 1-3-2006 superseded Notification No. 10/2003-C.E., the benefit of concessional rate continued to be available to the aforesaid goods (solid or hollow building blocks including aerated or cellular light weight concrete blocks and slabs) falling under Chapter 68 (except Heading 6804, 6805, 6811, 6812, 6813) in the 8 digit system of classification. 4. One of the disputes involved in appeal No. E/1097/2007 relates to classification of paver blocks. The assessee ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mum horizontal cross-section of 50 mm from any edge in any direction, having aspect ratio not more than four, except for complementary products". He laid much stress on the underlined words and submitted that paver blocks were not intended to be used in the construction/erection of building as vertical structures. According to him, 'paver blocks' were meant only for paving open areas/spaces and hence could not be considered as 'building blocks'. On this basis, it was argued that the paver blocks manufactured by the respondents were not to be classified as building blocks under SH 6810 11 90 (--- Other). In this connection, it was also argued that the paver blocks required to be classified on the basis of their predominant use (for paving open space) rather than any incidental use of a different kind. He relied on the Tribunal's decision in Perfect Sealing Systems Private Limited v. Collector of Central Excise, Pune, 1997 (91) E.L.T. 205 (Tribunal), wherein certain parts of engines were classified under Item 68 of the erstwhile Central Excise Tariff on the basis of predominant and principal use. Learned JCDR also pointed out that the same expression "building blocks" was used in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Factory Ltd. v. Union of India & Others, 1983 (13) E.L.T. 1566 (S.C.). The learned counsel also sought to distinguish the case of Perfect Sealing Systems (supra) by submitting that the relevant entry in the Notification considered in that case contained a reference to use of parts in specified goods. He also claimed support from the Tribunal's decision in CCE v. Crop Care P. Ltd. - 2008 (226) E.L.T. 705 (Tri.-Chennai) = 2008 (86) RLT 254 (CESTAT-Che.), to his argument that sub-classification was not relevant to the Notifications and that the benefit of the Notifications was not deniable to the paver blocks which were admittedly classifiable under Heading 68.07 pre - 28-2-2005 and Heading 6810 post - 28-2-2005. 7. We have given careful consideration to the submissions including the written submissions filed by both sides. It is not in dispute that the paver blocks manufactured and cleared by the respondents during the material period are classifiable as articles of concrete under Heading 6810 in the 8 digit system of classification of excisable goods. The issue to be considered is whether the paver blocks could be classified as 'building blocks' under SH 6810 11 90 as claimed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e's case any further. We further observe that the term 'building' used to qualify 'blocks' under SH 6810 11 of the Tariff Schedule has not been defined anywhere in the Central Excise Tariff Act or the Schedule thereto. 8. In the above scenario, one has got to ascertain as to how 'building blocks' are understood in the common parlance. According to the assessees, the common people understand these goods to be blocks used for building activity. On the contrary, it is the argument of the appellant that 'building blocks' are blocks used in a building as vertical structure. This view of the Revenue reverberated in Court by the learned JCDR does not appear to be in keeping with how the common populace understand similar expressions such as building materials, sewing machine, cooking gas, cutting board, drinking water and the like. It cannot be in dispute that a sewing machine is a machine used for sewing, that cooking gas is a gas used for cooking, that cutting board is a board used for cutting, that drinking water is water used for drinking. Building materials (cement, bricks, steel wires etc.) are materials used for building structures. These structures, in our view, need not be verti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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