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Issues: Classification of floor tiles manufactured by Inarco Ltd. under the Central Excise tariff - Whether the tiles should be classified under Heading 6807.00 or Heading 3918.10.
Analysis: 1. The appeal concerns the classification of floor tiles manufactured by Inarco Ltd. under the Central Excise tariff. The assessee classified the tiles under Heading 6807.00, while the Department proposed classifying them under Heading 3918.10 as plastic tiles based on their composition and market perception. 2. The Commissioner (Appeals) relied on a judgment by the Gujarat High Court regarding similar flooring tiles manufactured by another company, Bhor Industries Ltd., to classify the tiles under Heading 68.07. The High Court judgment emphasized the predominance of materials like limestone over plastic in determining classification. 3. The Department's appeal argued that the tiles' distinctive character comes from polyvinyl chloride and their market recognition as plastic tiles. However, the Supreme Court had previously dismissed the Department's appeal against the High Court's judgment, which emphasized the predominance of non-plastic materials in similar tiles. 4. The appellate tribunal noted that the High Court judgment was rendered under an earlier tariff regime and emphasized the need to determine whether plastic or limestone gives the tiles their essential character under the current interpretation rules. 5. Both sides failed to provide technical evidence supporting their contentions on whether plastic or limestone is the primary material defining the tiles. The tribunal highlighted the importance of acceptable evidence in determining classification based on essential characteristics. 6. The claim that the tiles are known in the market as plastic tiles lacked evidence and was deemed misleading by the tribunal. Market perceptions and misleading claims by manufacturers cannot solely determine the classification of goods under the tariff. 7. Ultimately, the tribunal found insufficient material to support the Commissioner (Appeals)' contention and dismissed the Department's appeal, upholding the classification of the floor tiles under Heading 68.07 based on the predominance of non-plastic materials like limestone.
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