2024 (11) TMI 1077 - AT - Central Excise

Classification of goods - unglazed ceramic wall tiles or burnt clay building bricks/tiles - Department is of the view that the impugned goods manufactured by the appellant are unglazed ceramic wall tiles classifiable under sub-heading 6907 10 90 of Central Excise Tariff Act, 1985, while the claim of the appellant is that their product is burnt clay building bricks/tiles falling under heading 6904 10 00 Roofing tiles tall under heading 6905 10 00 of Central Excise Tariff Act, 1985 - Availability of SSI exemption under Notification No. 1/2011-CE. HELD THAT - The issues involved in the present case are no more res integra and have been decided by the Appellate Authority as well as by the Adjudicating Authority and also by this Tribunal in favour of the appellant. In this regard, reference made to the decision in the case of M/s Modern Bricks Engg. Works, Derabassi, whereby the Appellate Authority has allowed the appeal of the assessee by vide O-I-A No. 137-138/CE/Appl/Chd-II/2013 dt. 05.04.2013. Similarly, the Appellate Authority allowed the appeal of the appellant in the case of M/s Bharat Bricks Co., Village Fatehpur, Derabassi vide O-I-A No. 198/CE/Appl/Chd-II/2013 dt. 22.05.2013. Further, it is found that the Tribunal vide Final Order No. 61382/2016 dt. 16.09.2016 in the appellant s own case 2016 (11) TMI 691 - CESTAT CHANDIGARH , has allowed the appeal of the appellant. It is also found that the demand for the subsequent period i.e. 01.05.2014 to 31.12.2015, in the appellant s own case, has also been dropped by the Additional Commissioner, Central Excise, Chandigarh-II vide Order-in-Original No. 37-38/CE/2016-17/ADC/CHD-II/SRM dt. 31.03.2017. All these orders passed by the various departmental authorities as well as the Tribunal have been accepted by the Revenue. The impugned orders are not sustainable in law and therefore, the same is set aside - appeal allowed.

Summary

Issues:
- Classification of goods: Whether the goods manufactured are unglazed ceramic wall tiles or burnt clay building bricks/tiles.
- Availability of SSI exemption under Notification No. 1/2011-CE.

Analysis:

Classification of Goods:
The appeals were directed against orders confirming duty demand and penalties for manufacturing goods classified by the department as unglazed ceramic wall tiles and by the appellant as burnt clay building bricks/tiles. The appellant argued that their products were not ceramic tiles but burnt clay products used for construction. The Adjudicating Authority failed to appreciate the differences between ceramic tiles and burnt clay tiles, leading to an incorrect classification. The appellant provided expert opinions and cited previous cases where similar issues were decided in their favor. The Tribunal and other authorities had previously ruled in favor of the appellant in identical cases, and the Revenue had accepted those decisions. Ultimately, the Tribunal found in favor of the appellant, setting aside the impugned orders and allowing the appeals.

SSI Exemption:
The issue of whether the SSI exemption under Notification No. 1/2011-CE was available to the appellant was also considered. The Tribunal noted that previous decisions in favor of the appellant had been accepted by the Revenue. As a result, the Tribunal concluded that the impugned orders were unsustainable in law and allowed all four appeals of the appellant, providing consequential relief as per law. The Tribunal's decision was based on the precedents set by previous rulings in similar cases and the acceptance of those rulings by the Revenue.

This comprehensive analysis highlights the key arguments, legal precedents, and the final decision of the Tribunal in favor of the appellant, addressing the issues of goods classification and SSI exemption effectively.