2018 (7) TMI 540 - AT - Customs

Deemed manufacture - import of marble slabs and its processing with resin filling, grinding and cutting and polishing - Benefit of N/N. 04/2006-CE dated 01.03.2006 - Department has denied the benefit of the said Notification and brought the imported marble slabs under Chapter sub-heading No.68022190 - Held that - The identical issue has come up before the Tribunal in the case of Classic Marbles Vs. Commr. of Central Excise, Vapi 2013 (9) TMI 648 - CESTAT AHMEDABAD , where it was held that this activity would not amount to manufacture during the relevant period on the imported marble slabs - appeal allowed - decided in favor of appellant.

Summary

Issues:
Classification of imported marble slabs for duty exemption under Notification No.04/2006-CE and levy of duty on processed agglomerated marble slabs.

Classification of Imported Marble Slabs:
The appellant imported marble slabs and processed them with resin filling, grinding, cutting, and polishing. The Department denied the benefit of Notification No.04/2006-CE, bringing the imported marble slabs under Chapter sub-heading No.68022190, demanding full duty. The Tribunal referred to a previous case where it was clarified that polished marble slabs fall under sub-heading No.68022190, making the appellant eligible for duty exemption under the said Notification. The Tribunal ruled in favor of the appellant, setting aside the impugned order and allowing the appeals based on the previous decision.

Levy of Duty on Processed Agglomerated Marble Slabs:
Regarding the processed agglomerated marble slabs, the Tribunal analyzed the activity of resin filling, polishing, and cutting/sawing done by the appellant. It was established that these activities did not amount to manufacture as per previous judgments and the absence of a deemed manufacture definition. The Tribunal held that duty demand on processed agglomerated marble slabs for the period prior to March 2008 was unsustainable in law. For the period after March 2008 up to February 2010, the Tribunal applied the judgment of the Supreme Court and deemed manufacture declaration, stating that the demand of duty during this period was not sustainable. Post-February 2010, the appellant was discharging duty liability under the relevant Chapter 68. The Tribunal ruled in favor of the appellant, allowing the appeals and setting aside the impugned order.

This comprehensive analysis of the judgment addresses the issues of classification of imported marble slabs for duty exemption and the levy of duty on processed agglomerated marble slabs, providing a detailed explanation of the Tribunal's decision based on legal interpretations and precedents.