2023 (10) TMI 1381 - AAAR - Customs

Classification of goods intended to be imported - Clear Float Glass - classifiable under Customs Tariff Item 7005 2990 of the First Schedule to the Customs Tariff Act 1975 or not - HELD THAT - All glass manufactured under the float process (clear coated or tinted) invariably would contain a layer of tin on one side which does not mean that the float glass is to be classified under 7005 10. Any float glass said to have an absorbent layer will invariably be coated with a microscopically thin coating of metal or metal oxide provided the coating is done on-line i.e. during the process of manufacturing of float glass and before the process of annealing so that the glass isn t regarded as worked. If otherwise the float glass has to be regarded as one having no absorbent layer. The float glass has not been undergone any coating process (coating as absorbent reflecting or non-reflecting layer) and cannot be classified under the Tariff Sub Heading 7005 10. The occurrence of tin layer on one side of the float glass does not make the glass have an absorbent reflecting or non-reflecting layer. Further as it is also not coloured throughout the mass (body tinted) opacified flashed or merely surface ground the item would not be covered under the Sub heading 7005 21. Hence the appropriate classification for clear float glass would be under the tariff sub heading 7005 29 as Others . At the 8 digit level if the item is tinted it would be classifiable under the CTI 7005 2910 and if the item is non-tinted it would be classifiable under CTI 7005 2990 of the Custom Tariff Act 1975. The goods in question i.e. the clear float glass don t merit classification under CTI 7005 1090 as claimed by the applicant instead they merit classification under CTH 7005 and more specifically under CTI 7005 2990 of the first schedule to the Customs Tariff Act 1975 and accordingly the benefit of exemption from duty under notification no. 46/2011- Customs dated 01.06.2011 Serial No. 934 which provides exemption to goods classifiable under 70010020 to 70051090 cannot be extended to the subject goods.

Summary

Issues Involved:
1. Classification of 'Clear Float Glass with an absorbent - non-reflective layer of Tin on one side'.
2. Eligibility for exemption under Notification No. 46/2011-Customs dated 01.06.2011.

Summary:

Issue 1: Classification of 'Clear Float Glass with an absorbent - non-reflective layer of Tin on one side'
- The applicant, M/s. Neha Traders, sought an advance ruling on the classification of 'Clear Float Glass with an absorbent - non-reflective layer of Tin on one side' under CTI 7005 10 90.
- The applicant explained the manufacturing process, highlighting that the glass is made using the Pilkington process and has a tin coating which is not visible to the naked eye but can be detected using specific methods.
- The Customs Authority for Advance Rulings (CAAR) referred to HSN Explanatory Notes to CTH 7005 and Note 2(c) to Chapter 70, which define the criteria for glass to be classified under heading 7005 10.
- Comments from the Commissioner of Customs, Cochin Custom House, and Jawaharlal Nehru Customs House indicated that the float glass does not undergo a specific coating process to have an absorbent, reflecting, or non-reflecting layer. Therefore, it should be classified under tariff subheading 7005 29 as "Others".
- The CAAR concluded that the clear float glass does not meet the criteria for classification under CTI 7005 10 90 and should be classified under CTI 7005 2990.

Issue 2: Eligibility for exemption under Notification No. 46/2011-Customs dated 01.06.2011
- The applicant argued that the Clear Float Glass should be eligible for exemption under Notification No. 46/2011-Customs, irrespective of the HS code mentioned by the foreign supplier, as long as it meets the classification under Indian Customs Tariff Heading 7005 10 90 and fulfills the ASEAN COO Rules.
- The CAAR noted that the goods in question do not merit classification under CTI 7005 10 90, and thus, the benefit of exemption under Serial No. 934 of Notification No. 46/2011-Customs cannot be extended.
- However, the CAAR acknowledged that based on the applicant's submission about the country of origin and the manufacturer, benefits under Serial No. 935 of the table annexed to the exemption notification would be available, subject to the applicant providing evidence of the origin of the goods to the Deputy/Assistant Commissioner of Customs.

Ruling:
- The Clear Float Glass is classifiable under CTI 7005 2990.
- The benefit of exemption from duty under Notification No. 46/2011-Customs dated 01.06.2011 Serial No. 934 is not applicable.
- Benefits under Serial No. 935 of the same notification may be available, subject to proof of origin.