2013 (11) TMI 384 - AT - Central Excise

Classification of polished Granite Slabs - Whether it would fall under Chapter 25 or under Chapter 68 Held that - Classification of Marble Slabs, even if polished would fall under Chapter 25 - the adjudicating authority s endeavour to reclassify the products i.e. polished Marble Slabs and polished Granite Slabs under Chapter 68 is incorrect - all the benefits arising out of such classification needs to be extended to the assessee. Duty demand on the polished Sand Stone Tiles and on Khatu Marbles Held that - The evidences produced before us categorically points that the said Sand Stone Tiles are cleared for export - The export invoices, bill of lading and various other documents specifically point out that the goods were cleared for export after being inspected by the Range authorities - It is a common knowledge that if the goods cleared for export, Central Excise duty does not arise - demands raised on Sand Stone Tiles and Khatu Marble Tiles set-aside Decided in favour of Assessee.

Issues involved:
Classification of polished Granite Slabs and duty on Khatu Marbles for the period 01.04.2006 to 31.10.2010, classification under Chapter 25 or Chapter 68, demand of duty on polished Marble Slabs, polished Granite Slabs, and polished Sand Stone Tiles, penalties imposition, export of Sand Stone Tiles, acceptance of tribunal's order by the department, reclassification attempt by the adjudicating authority.

Classification of Polished Granite Slabs and Duty on Khatu Marbles:
The issue revolved around the classification of polished Granite Slabs and duty on Khatu Marbles for a specific period. The appellant disputed the classification ordered by the adjudicating authority for the mentioned products. The counsel argued that demand of duty only arises for polished Granite Slabs and polished Sand Stone Tiles, not for polished Marble Slabs due to a notification benefit. Referring to a previous order, the counsel contended that the classification of polished Marble Slabs under Chapter 25 should also apply to polished Granite Slabs. The departmental representative supported the adjudicating authority's findings, emphasizing consistency with a previous order. The tribunal analyzed the records and upheld its previous decision classifying Marble Slabs under Chapter 25, which the department had accepted. Consequently, the attempt to reclassify the products under Chapter 68 was deemed incorrect, and the tribunal's order was to be fully enforced for both polished Marble Slabs and polished Granite Slabs.

Demand of Duty on Polished Sand Stone Tiles:
Regarding the duty demand on polished Sand Stone Tiles, evidence indicated that these tiles were indeed exported, supported by export-related documentation. The tribunal recognized that goods cleared for export are not subject to Central Excise duty. Consequently, demands raised on Sand Stone Tiles and Khatu Marble Tiles were set aside based on the export evidence presented. As a result, penalties imposed on the main appellant and other individuals were also set aside due to the duty demands being annulled.

Acceptance of Tribunal's Order and Reclassification Attempt:
The tribunal highlighted the department's acceptance of its previous order regarding the classification of Marble Slabs, emphasizing the need for full compliance with the tribunal's decisions. It criticized the adjudicating authority's attempt to reclassify the products against established judicial principles and reiterated that the tribunal's decision on classification should be applied uniformly. The tribunal emphasized that benefits arising from the correct classification under Chapter 25 should be extended to the appellant. The decision was based on the department's acceptance of the tribunal's order and the need for adherence to judicial discipline.

Penalties Imposition and Appeals:
Due to the duty demands on polished Granite Slabs and polished Marble Slabs being set aside, the imposition of penalties on the main appellant and other individuals was also revoked. The tribunal noted that the adjudicating authority had dropped various demands against the appellant based on tribunal judgments, with no appeals filed by the Revenue authorities. Consequently, all appeals were allowed, and the impugned order was set aside in line with the tribunal's previous decision and the covered issues.

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