2000 (8) TMI 110 - AT - Central Excise

Summary

Issues: Classification of glass moulds and gaskets used in the manufacture of ophthalmic lenses of hard resin.

In this judgment, the Appellate Tribunal CEGAT, Court No. IV, New Delhi, considered the classification of glass moulds and gaskets used by the appellant in making ophthalmic lenses of hard resin. The Tribunal referred to a previous decision regarding the same issue where it was determined that the product after grinding and polishing is distinct from ophthalmic blanks and falls under Central Excise Tariff Heading 70.15. The Tribunal also noted that the goods are known internationally as glass moulds. The appellant challenged this decision in the Supreme Court, which is still pending. Subsequently, the Revenue classified the goods under Tariff Heading 70.15 for subsequent periods, leading to further appeals and dismissals. The matter was then referred to a Larger Bench due to a differing view taken by the West Regional Bench at Mumbai.

Regarding the process of making glass moulds, the Tribunal observed that the glass moulds made by the appellant from worked ophthalmic glass do not fall under Chapter Heading 70.15 as claimed by the Revenue. The Tribunal highlighted that the moulds are specifically made for resin lenses and are not for general purposes like tableware or decoration. The Tribunal also rejected the Revenue's reliance on Chapter Note 1(c) to Chapter 84, stating that the glass used in the moulds falls outside Chapter 70, making the classification under Heading 84.80 more appropriate.

The Tribunal further referred to the Harmonized System of Nomenclature (HSN) to support the classification of the glass moulds under Heading 84.80, as ophthalmic elements of glass are considered outside the scope of Chapter 70. The Tribunal disagreed with the West Regional Bench's view that the goods should be classified under Heading 90.01, as the moulds consist of distinct glasses with different powers not necessarily usable as optical lenses. Therefore, the Tribunal concluded that the glass moulds in question are correctly classifiable under Chapter Heading 84.80 and not under Tariff Heading 70.15 as previously held.

In conclusion, the appeals were disposed of in favor of the appellant, with the glass moulds classified under Chapter Heading 84.80, granting them consequential reliefs.