Tariff classification of mosaic tiles turns on Chapter Note 2 to Chapter 69 and proved character of the goods.

Tariff classification of mosaic tiles depended on the true character of smaller ceramic-like pieces fixed to a sheet and on Chapter Note 2 to Chapter 69. The Tribunal held that the term "ceramic" is not ative by itself because it appears in both Chapters 68 and 69; the relevant inquiry is whether the goods are proved to be ceramic products fired after shaping within Chapter 69. As the Revenue produced no material showing that the goods met that description, and earlier decisions on similar goods had placed them in Chapter 68, the assessee's classification under Chapter 68 was sustained and the Revenue's challenge failed.

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Issues: Whether the goods consisting of smaller ceramic-like pieces affixed to a sheet were correctly classifiable under Chapter 68 as claimed by the assessee or under Chapter 69 as contended by the Revenue.

Analysis: The classification dispute turned on the true character of the goods and the effect of the tariff scheme and Chapter Note 2 to Chapter 69. The earlier Tribunal decisions concerning the same type of mosaic tiles were examined, where it was held that the word "ceramic" by itself was not decisive because it appears in both Chapters 68 and 69, and that Chapter Note 2 to Chapter 69 only limits the scope of that chapter to ceramic products fired after shaping. The Tribunal also treated the composition of the goods as material, noting the absence of evidence from the Revenue to show that the goods were ceramic products within Chapter 69. The prior decisions had already concluded, on similar facts and evidence, that such mosaic tiles fell under Chapter 68 and not Chapter 69.

Conclusion: The goods were held classifiable under Chapter 68 and not under Chapter 69; the Revenue's classification challenge failed.

Final Conclusion: The assessee's classification was sustained and the Revenue's appeal was rejected.

Ratio Decidendi: Where the tariff description uses the word "ceramic" in more than one chapter, classification must be determined by the chapter note and the proved character of the goods, and Chapter Note 2 to Chapter 69 cannot enlarge that chapter beyond ceramic products fired after shaping.

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