KEDLA AGGLOMERATED MARBLES LIMITED Vs. COLLECTOR OF CENTRAL EXCISE
SUPREME COURT OF INDIA
KEDIA AGGLOMERATED MARBLES LTD
COLLECTOR OF CENTRAL EXCISE
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(1.)THE appellant M/s Kedia Agglomerated Marbles Limited is engaged in manufacture of floor tiles which are marketed by them in the trade name "Marbella Agglomerated Marbles" and "Marbellam Tiles". THE product of the appellant is classified under tariff heading 68.07 for the purpose of excise duty under the Central Excise Tariff Act (for short 'the Act'). THE above classification of the appellant's product under Tariff heading 68.07 has been confirmed by order dated 21.6.1993 passed by the Collector of Customs and Central Excise (Appeals), Ahmedabad.
(2.)ON the basis of the aforesaid classification of its product under Tariff heading 68.07, appellant claimed exemption from payment of duty under Notification No. 59/91 -CE dated 20 -3 -1990 issued by the Central Government in exercise of powers conferred by sub -section (1) of Section 5A of the Central Excise Act. Under the aforesaid exemption notification, 'mosaic tiles that is to say tiles known commercially as mosaic tiles' included in Tariff heading 68.07 are exempt from payment of duty.
The appellant's case that the tiles manufactured by it are commercially known as mosaic tiles and are entitled to exemption was accepted by the Collector of Central Excise (Appeals) by order dated 21.6.93.
In the appeal preferred by the Department, Central Excise and Gold (Control) Appellate Tribunal [for short 'CEGAT], however, upset the decision of the lower authorities by holding against the appellant that since it is marketing its manufactured tiles in its different trade names and not as 'mosaic tiles', it is not entitled to the benefit of exemption notification.
(3.)THE only question raised in this appeal is whether the manufactured products of the appellant sold in the trade name of "Marbella Agglomerated Marble" and "Marbellam Tiles", are commercially known as "mosaic tiles" and are entitled to the benefit of exemption notification.
Before considering the material produced before the Central Excise Authorities by the appellant for claiming benefit of the exemption notification, it is necessary to examine the relevant Tariff heading and subheadings. Chapter 25 of the Tariff is under Section V with heading "Mineral Products" and subheading of the said Chapter is Salt, Sulphur, Clay and stone; plastering materials; lime and cement. Subheading "Marble" has entries 2504.10 to 2504.90 which are all products of marble like marbling blocks, marble in slabs and marble and tiles. The relevant entry 25.04 under sub -heading "Marble" reads as under: "25.04 Marble 2504.10 -In block - In slabs: Nil 2504.21 - In or in relation to the manu - Rs. 15 facture of which any process Is per ordinarily carried on with the square aid of power and where the meter electromotive force used exceeds ten horse power 2504.29 -Other - In tiles: Nil 2504.31 In or in relation to the manu - Rs.15 facture of which any process is per sq. ordinarily carried on with the meter aid of power and where the electromotive force used exceeds ten horse power 2504.39 -Other Nil 2504.90 -Other 10%
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