2023 (7) TMI 151 - AT - Central Excise

Classification of goods - polished granite slabs - classifiable under tariff item no. 6802 23 90 or under tariff item no. 2156 1200? - HELD THAT - The said issue has been decided by this tribunal in the case of M/S CLASSIC MARBLES VERSUS CCE VAPI 2013 (9) TMI 648 - CESTAT AHMEDABAD wherein, the tribunal has held that the activities carried out by the appellants prior to 1-3-2006, would not amount to manufacture. From 1-3-2006, the goods in question are classifiable under Chapter 25 and benefit of Notification No. 4/2006-C.E., dated 3-2-2006 are admissible. Thus, the product in question i.e. Granite Slabs is correctly classified under 21561200 and not under 68022390 accordingly, the demand on this count is not sustainable hence, the same is set aside. Demand of Rs. 9,07,393/- - HELD THAT - The appellant have made the submission that they had paid the duty on 30th June 2010 for the period April 2010 to June 2010 as a differential duty. However, the adjudicating authority may verify the said claim of the appellant and arrive at a correct computation of demand. Demand of Rs. 2,26,598/- in respect of clearance of marble slabs - HELD THAT - The appellant has paid the duty of Rs. 2.24 lacs accordingly, the same may be verified by the adjudicating authority. Appeal allowed in part.

Summary

Issues Involved:
1. Classification of polished granite slabs.
2. Demand of Rs. 9,07,393/- on artificial marble slabs.
3. Demand of Rs. 49,811/- on clearance of marble slabs without payment of duty.
4. Demand of Rs. 2,26,598/- on clearance of marble slabs without payment of duty.

Summary:

1. Classification of Polished Granite Slabs:
The primary issue was whether polished granite slabs should be classified under tariff item no. 6802 23 90 as per the revenue or under tariff item no. 2156 1200 as claimed by the appellant. The tribunal referenced previous judgments, including Aman Marbles Industries Pvt. Ltd. Vs. CE and Classic Marbles Vs. CCE, which supported the appellant's classification. The tribunal concluded that the polished granite slabs are correctly classified under 2156 1200, making the demand of Rs. 1,05,59,320/- unsustainable and thus set aside.

2. Demand of Rs. 9,07,393/- on Artificial Marble Slabs:
The appellant argued that they had already paid Rs. 6,71,789/- as differential duty for the period April 2010 to June 2010 and declared this in their ER-1 return for June 2010. The tribunal instructed the adjudicating authority to verify the appellant's claim and arrive at the correct computation of the demand.

3. Demand of Rs. 49,811/- on Clearance of Marble Slabs Without Payment of Duty:
The appellant did not contest this demand, considering it a small amount. Consequently, the tribunal sustained the demand of Rs. 49,811/-.

4. Demand of Rs. 2,26,598/- on Clearance of Marble Slabs Without Payment of Duty:
The appellant had paid Rs. 2.24 lacs towards this demand. The tribunal directed the adjudicating authority to verify this payment and adjust the demand accordingly.

Conclusion:
The appeal was partly allowed with the tribunal setting aside the major demand related to the classification of polished granite slabs while directing verification for the other demands. The judgment emphasized the importance of adhering to established legal precedents and ensuring accurate computation of duty demands.