2018 (3) TMI 264 - AT - Central Excise

Classification of goods - Building Blocks, solid and hollow pavers made of cement/concrete - whether classified under CTH 68101190 or under CTH 68109990? - benefit of N/N. 10/2003 dated 1.3.2003 - Held that - the classification of the impugned products manufactured by the respondent has been held to be under 68101190 against the classification alleged by the department to be under 68109990 - identical issue decided in respondent own case AEON S CONSTRUCTION PRODUCTS LTD. Versus COMMISSIONER OF C. EX., CHENNAI 2009 (6) TMI 247 - CESTAT, CHENNAI , where it was held that the assessees are entitled to the benefit of concessional rate of duty under the relevant Notifications as rightly held by the lower appellate authority - appeal dismissed - decided against Revenue.

Summary

Issues:
Classification of building blocks made of cement/concrete under CTH 68101190 of CETA, 1985 for concessional rate of duty under Notification 10/2003.

Analysis:
The department appealed against the Commissioner (Appeals) order classifying building blocks as pavers under CTH 68101190. The department argued that the blocks are used for sophistication and decoration, not building purposes. The respondent cited a previous case where the issue was decided in their favor. The Tribunal examined the classification of the products and referred to previous cases to determine the eligibility for concessional duty rates.

The Tribunal discussed the eligibility for the concessional rate of duty under Notification No. 10/2003 for paver blocks. The issue was whether the blocks should be classified under 68101190 or 68109990. The Tribunal considered IS specifications but concluded that they cannot solely determine the classification. They also emphasized the importance of the Explanatory Notes to HSN in classification matters. The Tribunal analyzed various cases and common understanding to determine that the paver blocks should be classified as building blocks under 68101190, not the residuary entry suggested by the Revenue.

Based on the previous decision and the analysis of the classification, the Tribunal upheld the classification of the building blocks as paver blocks under 68101190. The appeal by the Revenue was dismissed, and the assessees were deemed entitled to the concessional rate of duty under the relevant Notifications. The impugned order did not warrant any interference, leading to the dismissal of the appeal by the Revenue.