TMI Blog2003 (1) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... trade name "Marbella Agglomerated Marbles" and "Marbellam Tiles." The product of the appellant is classified under Tariff Heading 68.07 for the purpose of excise duty under the Central Excise Tariff Act (for short 'the Act'). The above classification of the appellant's product under Tariff heading 68.07 has been confirmed by order dated 21-6-1993 passed by the Collector of Customs and Central Excise (Appeals), Ahmedabad. 2.On the basis of the aforesaid classification of its product under Tariff heading 68.07, appellant claimed exemption from payment of duty under Notification No. 59/91-C.E., dated 20-3-1990 issued by the Central Government in exercise of powers conferred by sub-section (1) of Section 5A of the Central Excise Act. Under the aforesaid exemption notification, 'mosaic tiles that is to say tiles known commercially as mosaic tiles' included in Tariff Heading 68.07 are exempt from payment of duty. 3.The appellant's case that the tiles manufactured by it are commercially known as mosaic tiles and are entitled to exemption was accepted by the Collector of Central Excise (Appeals) by order dated 21-6-93. 4.In the appeal preferred by the Department, Central Excise and G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained in the form of chips. These chips are mixed either with the Cement or Resin ordinarily in the ratio of 90% Marble or Dolomites and 10% of Cement or 93% to 94% Marble or Dolomite and 6% to 7% of Resin. The colouring material is added wherever necessary. This mixture is put in the mould and converted in the form of blocks by pressure. The block is kept for curing for 8 to 10 days. Then after the block is cut into slabs and tiles of required sizes. The cut slabs tiles are polished as per the requirement. The finished tiles/slabs are used for flooring etc. purpose as tiles." 9.It is also not in dispute that the manufactured products i.e. tiles made from marble chipping or stones have been classified by the department for the purpose of Excise duty under Chapter 68 with Heading Articles of stone, plaster, cement, asbestos, mica or similar material. The relevant subheading under which the appellant's product is classified is 68.07 which reads as under : 68.07. All other articles of stone, plaster, cement, Asbestos, mica or of similar materials not elsewhere specified or included - 30% 10.It is not disputed by the department that "mosaic tile" fall under Tariff Hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. One affidavit from Shri Manoj Chimanbhai Patel who is an architect and another from JM Sharma, partner of M/s. Art Ganito, engaged in trading of building material and another from Shri Purushottamdas Bansal, have been produced by the appellants. All of them have deposed that the agglomerated marble tiles are known in the trade as mosaic tiles. The department has, however, not produced any material to deny these assertions of the traders and professionals. It is also brought on record by the respondents as well as by the department that the Chemical Examiner has also opined that the tiles manufactured by the respondents are known as mosaic tiles." 14.The ordinary dictionary meaning of mosaic is "pattern or design with inlaid glass or stone." It is also not seriously disputed that tiles manufactured by appellants from marble chips satisfy the dictionary meaning of the word "mosaic." The only dispute raised by the department is that the appellant's product even though technically can be described as 'Mosaic Tile' is not proved to be commercially known as such to be eligible for claiming benefit of exemption notification which in very clear terms grants exemption from duty to mos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated marble tiles" in question have to be deemed as "mosaic tiles" the respondents have relied upon the Tribunal's decisions in the case of Mridul Enterprise and Shon Ceramics (supra). In the case of Mridul Enterprises, the question that arose for consideration was whether unicolour glass tiles manufactured by the appellants were classifiable as "mosaic tiles" under Item 23D of the Central Excise Tariff or under item 23A of the Tariff as "glass and glassware." In the case of Shon Ceramics as well the issue for consideration was whether the tiles manufactured by the appellants were "mosaic tiles" falling under Item 23D of the Central Excise Tariff. It is seen that in these cases the appellants had produced evidence to establish that the product manufactured was known commercially as 'mosaic tiles' whereas the department had failed to produce any material evidence to rebut it, the Tribunal had held that the tiles in question were 'mosaic tiles'. In the instant case, as held by us the affidavits of certain persons filed by the respondents to the effect that the 'agglomerated marble tiles' are known in the trade as 'mosaic tiles' cannot be relied upon and the respondents own literatur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erstood, thus, in their popular meaning. After the words "mosaic tiles" the addition of words "tiles known commercially as mosaic tiles," in the text of the exemption notification appears to be an over emphasis, with intention to assign meaning to the product in the sense in which it is understood by those dealing in and using the product. 19.In our opinion, on a wholly irrelevant and unsubstantial ground the well reasoned orders of the lower authorities were upset by the Tribunal and benefit of exemption notification was wrongly denied to the appellant. 20.The appellant before the authority has produced sufficient material to demonstrate that the tiles manufactured by it with use of marble chips and crushed stones of marble are also known in the market as 'mosaic tiles' like other 'mosaic tiles' in which stones or articles other than marble are used. 21.Consequently, this appeal succeeds and is hereby allowed. The impugned order of the CEGAT dated 24-3-1995 is hereby set aside and the orders passed by the Assistant Collector of Central Excise dated 5-8-1991 and Collector of Central Excise (Appeals), Ahmedabad dated 21-6-1993 are restored. In the circumstances there shall b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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