1990 (11) TMI 219 - AT - Central Excise

Summary

Issues Involved:
The issue in the present case is whether the product manufactured by the appellants was a Mosaic Tiles falling under Central Excise Tariff Item 23D as claimed by the appellants or a Chinaware and Porcelain ware falling under Tariff Item 23B as held by the Department.

Classification Issue:
The appeal was filed against an Order-in-Original alleging wrongful exemption under specific Notifications for goods classified as Chinaware and Porcelain ware under Tariff Item 23(B)(4). The appellants contended that the product was a mosaic tile, not falling under Item 23(B). They argued that the Appellate Collector had previously classified the item as a mosaic tile for a subsequent period, which should be binding. The appellants emphasized the importance of the description in the explanation to Tariff Item 23D in determining classification, supported by trade parlance evidence. The Department failed to provide evidence to counter this claim. The Tribunal concluded that the product was classifiable as mosaic tiles under Tariff Item 23D, overturning the Collector's classification under Item 23B.

Legal Precedents and Arguments:
The appellants cited legal precedents to support their position that the Collector should adhere to the Appellate Collector's classification decision for the subsequent period. They argued that the burden of proof lay with the Department to establish the correct classification, which was not adequately done. The appellants also highlighted the importance of trade parlance and the description in the Tariff entry in determining classification. The Collector's reliance on the initial declaration by the appellants was deemed insufficient to override the trade parlance and description considerations under Tariff Item 23D.

Decision and Rationale:
After considering the arguments and evidence presented, the Tribunal found that the Collector's classification under Item 23B was unjustified. The Tribunal determined that the goods in question should be classified as mosaic tiles under Tariff Item 23D based on the trade parlance, description, and the explanation provided in the Tariff entry. The Tribunal emphasized that the chemical contents of the tiles should not influence the classification under Item 23D. As the Department failed to provide substantial evidence to refute the trade parlance aspect, the appeal was allowed on the issue of classification with consequential relief granted to the appellants.