2006 (2) TMI 537 - AT - Central Excise

Summary

Issues:
Dutiability of bricks and tiles manufactured by the appellant assessee.

Analysis:
The main issue in these appeals revolved around the dutiability of bricks and tiles manufactured by the appellant assessee. The impugned order classified the items as 'fire clay bricks,' subjecting them to duty, while the appellant argued that they should be considered as clay bricks exempt from duty. The appellant contended that the items did not meet the standards for fire clay bricks, were not used as such in construction, and were not bought and sold as fire clay bricks.

The appellant pointed out previous Tribunal decisions where similar issues were raised and resolved in favor of the assessee. In cases like CCE v. M/s. Mahakoshal Potteries and M/s. Perfect Chemicals Ware, the Tribunal rejected the Revenue's claim of treating similar items as fire clay bricks. The appellant argued that these precedents supported their position that the items in question should not be classified as fire clay bricks.

The impugned orders found that the bricks and tiles manufactured by the assessee, labeled as 'clay bricks,' were used in various industrial applications requiring resistance to high temperatures, such as lining of chemical plants, furnaces, and chimneys. However, the Tribunal, considering commercial identity, standards, and use, held that these items should not be classified as fire clay bricks. Citing previous Tribunal decisions, the appellant successfully argued that the duty demand and penalties imposed in the impugned orders were not sustainable, as the issue had already been settled in favor of the assessee by the co-ordinate Benches. Consequently, the impugned orders were set aside, and all appeals were allowed with any consequential relief to the appellants.