Excisability of clay biscuit tiles - Regarding - Central Excise - 22/88

Excisability of clay biscuit tiles - Regarding Circular No. 22/88 Dated 17-10-1988 [From F. No. 133/1/88-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Excisability of clay biscuit tiles - Regarding. A doubt has arisen as to whether clay biscuit tiles, which arise in the manufacture of glazed tiles, at the stage of first before glazing are to be subjected to duty and if so, under what heading. 2. It has been reported that clay biscuit tiles are not finished products but are in-process material obtained in the manufacture of glazed tiles. These are different from unglazed tiles inasmuch as the biscuit tiles are weak, highly absorbant and non-vitrified. Unlike unglazed tiles which are for use for paying floor etc. the clay biscuit tiles have no use other than to be glazed into glazed tiles. These are, thus, not marketable. 3. The matter has been examined in Board's Office, along with samples of the product, in consultation with the Dy. Chief Chemist, CRCL, New Delhi. 4. It is observed that the clay biscuit tiles are not goods of heading 60.01 which covers products made from siliceous fossil meals or similar siliceous earths i.e. of refractory material. HSN Explanatory Notes (p. 912) indicate that other ceremics/products are covered by sub-Chapter 2, HSN Heading 69.04 to 69.14. Clay biscuit tiles would fall under 69.07 or 69.08 depending whether they are glazed or not. The corresponding entry under the Central Excise Act would be 6905 for unglazed and 6906 for glazed tiles. The clay biscuit unvitrified porous unglazed tiles cannot be regarded as glazed tiles in semi-finished condition having the essential character of glazed tiles. They are also different from the unglazed tiles as commercially understood inasmuch as they are weak highly absorbant and non-vitrified and cannot be used as such except to manufacture glazed tiles. They cannot also be regarded as unglazed tiles in semi-finished condition since they are , as a matter of fact, not used for manufacturing unglazed tiles. They are to be regarded as in-process material which is not marketable and therefore should not be considered as excisable goods. Accordingly it is clarified that unvitrified porous unglazed biscuit tiles obtained during the manufacture of glazed tiles are not excisable goods and they are not required to be subject to duty. Field Formations may be informed accordingly.