Cement tiles as flooring: exemption upheld where binding precedent treated them as part of the floor itself.

Cement tiles were eligible for exemption under Notification No. 59/90-C.E. because they were treated as flooring, not floor-covering. The relevant classification issue had already been settled by the Supreme Court in the assessee's own case, which held that the goods formed part of the floor itself. In light of that binding ruling, the exemption applied to the goods and the denial of benefit was unsustainable.

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Issues: Whether cement tiles were eligible for the benefit of Notification No. 59/90-C.E. dated 12-03-1990 by treating them as flooring and not as floor-covering.

Analysis: The exemption under the notification was available to flooring. The dispute on the nature of the goods had already been settled by the Apex Court in the assessee's own case, where the goods were held to be a form of floor itself rather than a floor-covering. In view of that binding ruling, the assessee's claim to exemption was supported.

Conclusion: The goods were treated as flooring for the purpose of the notification, and the denial of exemption was unsustainable.

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