1998 (5) TMI 229 - AT - Central Excise

Summary

Issues: Classification under Central Excise Tariff Act, 1985; Interpretation of Notification No. 67/88 for exemption eligibility.

Classification under Central Excise Tariff Act, 1985:
The case involved the classification of glass products like pizza plates, pie dishes, and mixing bowls under sub-heading 7015.00 of the Central Excise Tariff Act, 1985. The jurisdictional Assistant Commissioner initially denied exemption under Notification No. 67/88, stating that the exemption was exclusively for tableware, not for products used for baking and serving. However, the Commissioner (Appeals) disagreed, highlighting that the notification did not specify exclusive table use and referred to Indian Standard Specification for glass tablewares. The Commissioner (Appeals) emphasized that just because the items could be used for baking, the exemption could not be denied. The Commissioner (Appeals) overruled the Assistant Commissioner's view that the products did not qualify for exemption due to their shape and purpose.

Interpretation of Notification No. 67/88 for exemption eligibility:
The dispute revolved around the interpretation of Notification No. 67/88, which granted partial exemption to glass tableware items like jugs, cups, plates, drinking glasses, and bowls. The Department argued that the products in question, capable of being used for baking, did not strictly fall under the exemption criteria of "tableware." The Department referred to the dictionary meaning of "tableware" as dishes, spoons, knives, and forks for table use, asserting that the Commissioner (Appeals) had exceeded the notification terms in his interpretation. On the other hand, the respondents' counsel contended that the Commissioner (Appeals) had provided detailed reasoning supported by Indian Standard specifications. The counsel highlighted that the notification excluded tableware made of lead crystal, which the products in question were not. Moreover, the counsel pointed out a previous order by the Commissioner (Appeals) in a similar case, which upheld the eligibility for exemption under the same notification and had not been challenged further.

Judgment:
The Appellate Tribunal upheld the Commissioner (Appeals)'s decision, emphasizing the detailed findings and technical literature references in the order. The Commissioner (Appeals) had categorized the products as glass tableware based on ISI specifications, which were extended in July 1991 to include items like bowls, jugs, plates, casseroles, and dishes for preparing food. The Tribunal noted that the amendment clarified the inclusion of products like Square Cake Dish and Pizza Plates in glass tableware, suitable for food preparation. Additionally, the Tribunal considered a previous order by the Commissioner (Appeals) in the same respondent's case, which had not been challenged further, indicating consistency in interpretation. Consequently, the Tribunal rejected the appeal, finding no grounds to interfere with the Commissioner (Appeals)'s order.