2023 (11) TMI 485 - AT - Customs

Classification of imported goods - Clear Float Glass (CFG) - to be classified under Tariff Item 7005 10 90 or under CTH 7005 2990 of the Customs Tariff Act (CTA) or not - benefit of exemption under Sl.No.934 (I) of Notification 046/2011-CUS dated 01.06.2011 - HELD THAT - There is no dispute that the impugned goods is nonwired glass. By conjoint reading of the note 2(c) and the manufacturing process, it can be inferred that CFG would have microscopical layer of metal, namely tin, which is an absorbent layer as contemplated under the above said Chapter Note 2(c). Hence, the correct classification of the impugned goods is under CTH 7005 1090 of Customs Tariff Act - the manufacturers in India of the identical goods namely M/s. Saint-Gobain India Pvt.Ltd., M/s. Goldplus Float Glass are manufacturing and clearing CFG under CTH 70051090 of the CTA and the same has been accepted by the department. The appellant sought reply under RTI dated 17.07.2023, wherein the question was raised that it is observed that in some of the Report, no other layer other than Tin layer is found on one side of the Glass which is fluorescent is mentioned. Whether such layers are reflective or not-reflective and whether such layers are absorbent or not? The reply is given as (a) not-reflective and (b) absorbent (UV). If the same is considered then the said clarification is satisfying the Chapter Note 2(c) of Chapter 70 of the Customs Tariff Act and the said Report has not been relied upon by the adjudicating authority while adjudicating the case. Therefore, the impugned order is bad in law. As from the facts of the case, it is clear that the Clear Float Glass imported by the appellant are absorbent and having non-reflecting layer, in that circumstances, the appellant has qualified the merit classification under CTH 7005 1090, therefore, the correct classification of the Clear Float Glass imported by the appellant under the impugned Bills of Entry is classifiable under CTH 7005 1090. Consequently, the appellant is entitled for benefit of Serial No.934 (I) of Notification No.046/2011-CUS dated 01.06.2011. The impugned orders deserve no merit, hence, the same are set aside - Appeal allowed.

Summary

Issues Involved:
1. Classification of Clear Float Glass (CFG)
2. Entitlement to benefit under Notification No. 046/2011-CUS dated 01.06.2011

Summary:

1. Classification of Clear Float Glass (CFG):
The appellant, a regular importer of Clear Float Glass (CFG), classified the goods under Tariff Item 7005 10 90 of the Customs Tariff Act (CTA) and claimed benefits under Notification No. 046/2011-CUS dated 01.06.2011. The adjudicating authority classified the CFG under CTH 7005 2990, denying the benefit of the notification. The appellant argued that the tin layer present in CFG is an absorbent layer as per Chapter Note 2(c) of Chapter 70, which defines an absorbent layer as a "microscopically thin coating of metal or of a chemical compound." The tribunal agreed with the appellant, finding that the manufacturing process of CFG involves a tin layer, which qualifies as an absorbent layer under Chapter Note 2(c). Consequently, the correct classification of CFG is under CTH 7005 1090.

2. Entitlement to Benefit under Notification No. 046/2011-CUS dated 01.06.2011:
The tribunal noted that manufacturers in India, such as M/s. Saint-Gobain India Pvt. Ltd. and M/s. Goldplus Float Glass, classify CFG under CTH 7005 1090, which has been accepted by the department. The tribunal also referenced rulings from the Advance Ruling Authority and previous orders by the Commissioner (Appeals) supporting the classification of CFG under CTH 7005 1090. Given that the appellant's CFG meets the criteria of having an absorbent layer, the tribunal held that the appellant is entitled to the benefit of Serial No. 934 (I) of Notification No. 046/2011-CUS dated 01.06.2011. Thus, the appeals were allowed with consequential relief.