1995 (7) TMI 185 - AT - Central Excise

Summary

Issues Involved:
1. Classification and excisability of marble/granite tiles.
2. Classification of slabs worked beyond the normal quarry product stage.
3. Excisability of marble/granite crazy and claddings.
4. Appropriate relief or remand based on the above issues.

Summary:

1. Classification and Excisability of Marble/Granite Tiles:
The appellants argued that cutting marble and granite blocks into slabs and tiles does not amount to manufacture, citing previous Tribunal and Supreme Court decisions. The Tribunal in the case of Fine Marble & Minerals Pvt. Ltd. held that marble slabs sawn from marble blocks were not manufactured goods as there was no transformation into a commercially distinct commodity. This view was upheld by the Supreme Court. The Tribunal in the case of Associated Stone Industries (Kotah) Ltd. v. Collector of Central Excise, Jaipur also concluded that cutting, edging, trimming, and polishing of marble blocks did not amount to manufacture. The Tribunal's decision in the case of Indian Granite Ltd. v. Collector of Central Excise, Hyderabad, which held that polished granite slabs were classifiable under T.I. 68, was distinguished by the Tribunal in the case of Associated Stone Industries.

2. Classification of Slabs Worked Beyond Normal Quarry Product Stage:
The Tribunal noted that slabs produced by mere sawing of blocks are not excisable. However, slabs worked beyond the stage of the normal quarry product, involving processes such as machining and polishing, would become excisable. The Tribunal referred to the Harmonized System of Nomenclature (HSN) which classifies worked stone under Heading 68.02.

3. Excisability of Marble/Granite Crazy and Claddings:
There was insufficient material on record to determine the excisability of marble/granite crazy and claddings. The Tribunal directed that this aspect be examined afresh with sufficient material to show that these items are "goods" in their own right, bought and sold in the market.

4. Appropriate Relief or Remand:
The Tribunal, considering the majority opinion, held that marble tiles are non-excisable, granite tiles are classifiable under Item 68 CET, and the exigibility of marble/granite crazy and claddings is to be determined afresh. The case was remanded to the jurisdictional Assistant Commissioner of Central Excise for de novo consideration.

Final Order:
In view of the majority opinion, it is held that marble tiles are non-excisable; granite tiles are classifiable under Item 68 CET; and the exigibility of marble/granite crazy and claddings is to be determined afresh with sufficient material to show these are "goods" in their own right, bought and sold in the market. The case is remanded to the jurisdictional Assistant Commissioner of Central Excise.