2000 (2) TMI 401 - AT - Central Excise

Issues Involved:
1. Classification of Glass Mosaic Tiles under the Central Excise Tariff Act, 1985.
2. Applicability of relevant case law and earlier decisions.
3. Quantification of the duty amount.
4. Interpretation of tariff headings and rules.
5. Determination of the appropriate tariff heading for Glass Mosaic Tiles.

Detailed Analysis:

1. Classification of Glass Mosaic Tiles:
The primary issue is whether Glass Mosaic Tiles should be classified under Tariff Sub-heading 7015.00 as "Other articles of glass" or under Sub-heading 6807.00 as "All other articles of stone, plaster, cement, asbestos, mica or of similar materials, not elsewhere specified or included." The adjudicating authority and the Commissioner (Appeals) classified the tiles under 7015.00, while the appellants argued for 6807.00.

2. Applicability of Relevant Case Law and Earlier Decisions:
The appellants cited several cases to support their classification under 6807.00:
- Mridul Enterprises v. Collector of Central Excise: The Tribunal held that Glass Mosaic Tiles are not classifiable under Tariff Item No. 23A of the erstwhile Tariff as Glass and Glassware.
- Empire Industries Ltd. v. Collector of Central Excise Bombay: The Tribunal and the Supreme Court dismissed the Revenue's appeal, holding that Glass Mosaic Tiles are not classifiable as Glass and Glassware.
- Shon Ceramics Pvt. Ltd. v. Collector of Central Excise: The Tribunal held that Glass Mosaic Tiles are not classifiable under the new tariff as other articles of glass.

The Tribunal found that these decisions were based on the erstwhile tariff, and the new tariff did not have specific entries covering Mosaic tiles like Item No. 23D of the old tariff.

3. Quantification of the Duty Amount:
The appellants argued that the duty amount confirmed by the adjudicating authority (Rs. 10,89,601.00) was beyond the scope of the show cause notice, which demanded Rs. 4,47,647.00. The Tribunal found merit in this argument and set aside the excess demand.

4. Interpretation of Tariff Headings and Rules:
The appellants argued that the word "including" in Sub-heading 7015.00 should not be used to enlarge the scope of the entry and that Glass Mosaic Tiles are not akin to articles used for table, kitchen, office, or indoor decoration. The Tribunal referred to the Bombay High Court's interpretation of "including" and concluded that Sub-heading 7015.00 covers other articles of glass, including those for specific purposes, thus encompassing Glass Mosaic Tiles.

5. Determination of the Appropriate Tariff Heading:
The Tribunal concluded that Glass Mosaic Tiles, being manufactured from glass powder, are classifiable under Sub-heading 7015.00. However, the Vice President disagreed, citing the legislative history and judicial decisions that Glass Mosaic Tiles are not articles of glass. He argued that the product should be classified under Sub-heading 6807.00, as it is more akin to articles of stone, plaster, cement, asbestos, mica, or similar materials.

Separate Judgments:
- Judicial Member (S.S. Kang): Held that Glass Mosaic Tiles are classifiable under Sub-heading 7015.00.
- Vice President (P.C. Jain): Held that Glass Mosaic Tiles are classifiable under Sub-heading 6807.00 and entitled to the benefit of Notification 50/86-CE.
- Third Member (P.G. Chacko): Concurred with the Vice President, concluding that the product falls outside Chapter 70 and should be classified under Sub-heading 6807.00.

Final Order:
The majority opinion set aside the impugned order and allowed the appeal, classifying Glass Mosaic Tiles under Sub-heading 6807.00 and granting the benefit of Notification 50/86-CE.

← Previous Next →