Clear float glass classified under CTI 7005 2990 not 7005 1090, ineligible for duty exemption under notification 46/2011-Customs

The Customs Authority for Advance Rulings, Mumbai ruled that clear float glass should be classified under CTI 7005 2990 rather than 7005 1090 as claimed by the applicant. The Authority determined that the natural tin layer present on float glass from the manufacturing process does not constitute an absorbent, reflecting, or non-reflecting layer requiring classification under 7005 10. Since the glass lacks coating processes and is not body-tinted or surface-worked, it falls under the "Others" category 7005 29. Consequently, the goods are ineligible for duty exemption under notification 46/2011-Customs, which covers items classified under 70010020 to 70051090.

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Issues Involved:
1. Classification of 'Clear Float Glass with an absorbent - non-reflective layer of Tin on one side'.
2. Eligibility for exemption under Notification No. 46/2011-Customs dated 01.06.2011.

Summary:

Issue 1: Classification of 'Clear Float Glass with an absorbent - non-reflective layer of Tin on one side'
- The applicant, M/s. Neha Traders, sought an advance ruling on the classification of 'Clear Float Glass with an absorbent - non-reflective layer of Tin on one side' under CTI 7005 10 90.
- The applicant explained the manufacturing process, highlighting that the glass is made using the Pilkington process and has a tin coating which is not visible to the naked eye but can be detected using specific methods.
- The Customs Authority for Advance Rulings (CAAR) referred to HSN Explanatory Notes to CTH 7005 and Note 2(c) to Chapter 70, which define the criteria for glass to be classified under heading 7005 10.
- Comments from the Commissioner of Customs, Cochin Custom House, and Jawaharlal Nehru Customs House indicated that the float glass does not undergo a specific coating process to have an absorbent, reflecting, or non-reflecting layer. Therefore, it should be classified under tariff subheading 7005 29 as "Others".
- The CAAR concluded that the clear float glass does not meet the criteria for classification under CTI 7005 10 90 and should be classified under CTI 7005 2990.

Issue 2: Eligibility for exemption under Notification No. 46/2011-Customs dated 01.06.2011
- The applicant argued that the Clear Float Glass should be eligible for exemption under Notification No. 46/2011-Customs, irrespective of the HS code mentioned by the foreign supplier, as long as it meets the classification under Indian Customs Tariff Heading 7005 10 90 and fulfills the ASEAN COO Rules.
- The CAAR noted that the goods in question do not merit classification under CTI 7005 10 90, and thus, the benefit of exemption under Serial No. 934 of Notification No. 46/2011-Customs cannot be extended.
- However, the CAAR acknowledged that based on the applicant's submission about the country of origin and the manufacturer, benefits under Serial No. 935 of the table annexed to the exemption notification would be available, subject to the applicant providing evidence of the origin of the goods to the Deputy/Assistant Commissioner of Customs.

Ruling:
- The Clear Float Glass is classifiable under CTI 7005 2990.
- The benefit of exemption from duty under Notification No. 46/2011-Customs dated 01.06.2011 Serial No. 934 is not applicable.
- Benefits under Serial No. 935 of the same notification may be available, subject to proof of origin.

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