2016 (7) TMI 1103 - AT - Central Excise

Mis-classification of unglazed ceramic tiles under Chapter Heading 6906 10 00 - Held that - It is found that there is no case in respect of Revenue s stand as it have not been able to counter the report of Chemical Examine, Madras, which has supported that item in question is unglazed tile deserving classification under Heading 6905 00. It has also been noted in the Order-in-Original itself that Department had written to Accountant General and this objection was settled between the Department and the Office of the Accountant General. Consequently, there are no substantial reasons to classify the item in question viz., unglazed ceramic tiles in any other Chapter Heading other than 6905 00. Consequently, Department s stand that classification for the item has to be under Chapter Heading 6906 of Central Excise Tariff Act does not stand any merit. - Decided in favour of assessee.

Summary

Issues: Mis-classification of unglazed ceramic tiles under Chapter Heading 6906 10 00.

Analysis:
The appeal was filed by the Commissioner of Central Excise against the Order of Commissioner (A) regarding the mis-classification of unglazed ceramic tiles. The Commissioner (A) had rejected the Department's appeal against two Orders-in-Original passed by Assistant Commissioner and Deputy Commissioner, dropping the proceedings against the assessee. The Revenue argued that the vitrified ceramic tiles in question should be treated as glazed tiles and not unglazed tiles as classified by the lower authorities under Chapter Heading 6905. The defendant advocate, on the other hand, argued that the show-cause notices were issued based on an audit objection report, and the manufacturing process of both glazed and unglazed ceramic tiles was explained with the support of the Chemical Examiner's report. The advocate also cited a case law supporting the classification as unglazed tiles. The Tribunal found that the report of the Chemical Examiner from Madras supported the classification of the item as unglazed tile under Heading 6905, and there were no substantial reasons to classify it otherwise. The Department's contention that the classification should be under Chapter Heading 6906 was dismissed, and the appeal of the Revenue was consequently dismissed.

In conclusion, the judgment revolved around the classification of unglazed ceramic tiles under the appropriate Chapter Heading. The Tribunal considered the arguments presented by both sides, especially focusing on the support provided by the Chemical Examiner's report in favor of the classification as unglazed tiles under Heading 6905. The judgment emphasized the importance of factual evidence and expert opinions in determining the correct classification of goods for Central Excise purposes.