Mis-classification of unglazed ceramic tiles under Item 6906 10 00

PJ/Case Law /2016-17/3325

Case:-COMMR. OF C. EX.,CUS. & S.T. BELGAUM VersusMURDESHWAR CERAMICS LTD.
Citation:-2016 (337) E.L.T. 384 (Tri. - Bang.)

Brief facts:-This appeal is by Commissioner of Central Excise, Belgaum against the Order of Commissioner (A). The Commissioner (A) in his order-in-appeal rejected the Department’s appeal against two Orders-in-Original dated 21-9-1999 and 14-7-2000 passed by Assistant Commissioner, Central Excise, Hubli Division. The issue concerned is with mis-classification of unglazed ceramic tiles under Item 6906 10 00. Department issued two show cause notices to the assessee viz., M/s. Murudeswara Ceramics Ltd. on the issue of misclassification of glazed ceramic tiles as unglazed tiles resulting in short-payment of Central Excise as mentioned in the show cause notice. These show cause notices were disposed of by Asst. Commissioner of Central Excise, Hubli and Deputy Commissioner, Hubli respectively, wherein under both the orders, proceedings initiated were dropped against assessee viz., M/s. Murudeswara Ceramics Ltd. The Commissioner (A) also approved the Orders-in-Original by rejecting the Department’s appeal.

Revenue was now before this Tribunal against the said order of Commissioner (A). Revenue represented by learned AR, Shri Mohd. Yousaf, Addl. Commissioner (AR) has argued that the vitrified ceramic tiles under question were to be treated as glazed tiles and the of lower authorities which have classified the items as unglazed under Chapter Heading 6905 of Central Excise Tariff Act, 1985 were to be set aside.
Appellant’s contention:-The defendant advocate, Shri S. Raghu had mainly argued that respective show cause notices were issued because of audit objection report by Accountant General’s Audit party. Later manufacturing process of both glazed and unglazed ceramic tiles were explained and report of Chemical Examiner in this regard was also submitted. It was also mentioned that the case law of Wipro Ltd. - 1999 (107) E.L.T. 398 (Tribunal) has defined the material as unglazed tile and that the item is factually unglazed ceramic tile was finally accepted by the Accountant General’s office. It was mentioned that Chemical Examiner, Madras’ report, fully supported the stand of the assessee viz., M/s. Murudeswara Ceramics Ltd. The respondent further argues that it is a clear-cut finding that there was no mis-classification of the item viz., unglazed ceramic tiles by them which was actually the initial contention of the audit party; the classification claimed by the assessee under Chapter Heading 6905 is correct and proper.
Respondent’s contention:-The Revenue has reiterated the submissions given in the appeal.
Reasoning of Judgement:-After consideration of the facts on record and the submissions of both the sides, it was found that there was no case in respect of Revenue’s stand as it have not been able to counter the report of Chemical Examiner, Madras, which had supported that item in question is unglazed tile deserving classification under sub-heading 6905 00. It was also noted in the Order-in-Original itself that Department had written to Accountant General and this objection was settled between the Department and the Office of the Accountant General. Consequently, there was no substantial reasons to classify the item in question viz., unglazed ceramic tiles in any other sub-heading other than 6905 00. Consequently, Department’s stand that classification for the item has to be under Chapter Heading 6906 of Central Excise Tariff Act did not stand any merit. Therefore, the appeal of the Revenue was hereby dismissed.
Decision:- Appeal allowed
Comment:- The above case revolves around the classification of unglazed ceramic tiles.In view of undisputed test report of chemical examiner that manufactured tiles are unglazed, it was held that classification thereof upheld in Heading 6905 of Central Excise Tariff and not under Heading 6906 was correct.

Prepared by:- Praniti Lalwani

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PJ/Case Law /2016-17/3325

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