2016 (11) TMI 691 - AT - Central Excise

Classification of manufactured product - ceramic titles or clay bricks/tiles? - whether the appellant is manufacturing ceramic titles or not? - Held that - On going through the process of manufacture it was found that the appellants product are building bricks classifiable under the heading 69.04 and which are exempt vide Notification No. 05/2006-CE dated 01.03, 2006 as amended - the appellants are manufacturing the bricks for construction purpose which exempted under Notification No.05/2006-CE dated 01.03.2006 - appeal allowed - decided in favor of appellant-assessee.

Summary

Issues:
- Classification of goods as ceramic tiles or clay bricks/tiles for duty liability.

Analysis:
The appellant, engaged in manufacturing various tiles, faced a demand for duty under chapter 69 of the Central Excise Tariff Act, 1985, alleging the manufacture of ceramic tiles. The appellant contended that they produced clay bricks/tiles manually and mechanically from local clay, used in construction. A show cause notice was issued for duty demand under chapter 69. The appellant argued that the case was fact-based to determine if they manufactured ceramic tiles. The respondent objected, stating it was a classification issue for a Division Bench. The tribunal found the case focused on whether the appellant made ceramic tiles or not, not a classification matter, proceeding with the disposal.

During arguments, the appellant presented the manufacturing process involving clay kneading, feeding, grinding, molding, drying, firing, and sorting before sale. Referring to a previous Order in-Appeal, the Commissioner classified the appellant's products as building bricks exempt under Notification No. 05/2006-CE for construction purposes. As the Commissioner's order was final and facts undisputed, the tribunal concluded the appellant manufactured bricks for construction, exempted under the notification, setting aside the duty demand.