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Tiles with 85% of limestone are "stone tiles" and not "Plastic tiles".
Tiles with 85% of limestone are "stone tiles" and not "Plastic tiles".
Tiles which contain 85 per cent of Limestone and 13 percent of PVC and Plastic in noticeable amount should be classified as "Stone tiles"
1. Major judgement passed by the Hounarable Supreme Court of India.
2. This judgement covers section 2, Rule 3(b) of Interpretative Rules, of the Central Excise Tariff Act, 1985 - Classification - Blended marble vinyl flooring (Floor Tiles) - Tariff Headings 68.07 v. 3918.10 - Period March, 1995 to November, 1995.
3. Tiles manufactured by assessee had 13.3 per cent PVC and 84.9 per cent limestone and plastic was used in un-noticeable amount.
4. Assessee classified the Tiles under Heading 68.07 'articles of stone, cement'.
5. The Department claimed classification under Heading 3918.10. 'floor covering of plastics' 6. The department applied 'essential character principle' of Interpretative Rule 3(b).
6. Tribunal held that goods were classifiable under Heading 68.07.
7. HELD : Use of limestone to extent of 84-85 per cent and use of plastic in un-noticeable amount clearly state that limestone grants characteristic of 'use' to material.
8. Further, Department was not able to produce any evidence substantiating that goods should be classified as plastic tiles in market.
9. Onus was on the Department to show that goods were to be classified under sub-heading 3918.10, which they have failed to discharge.
10. THUS the case was held in favour of the Assessee.
