Classification of burnt clay goods as building bricks secured exemption and defeated the excise duty demand.

Classification of manufactured goods turned on their true character: the product was treated as burnt clay goods used in construction, namely building bricks, rather than ceramic tiles under Chapter 69. The analysis relied on the manufacturing process and an earlier appellate finding on the same facts, which had attained finality. On that basis, the goods were covered by the exemption for building bricks under Notification No. 5/2006-C.E., and the excise duty demand could not be sustained.

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Issues: Whether the goods manufactured by the appellant were classifiable as ceramic tiles under Chapter 69 of the Central Excise Tariff Act, 1985 or were building bricks eligible for exemption under Notification No. 5/2006-C.E. dated 1-3-2006.

Analysis: The manufacturing process and the earlier appellate order were relied upon to determine the nature of the product. The product was found to be burnt clay goods used for construction, namely building bricks, and the earlier finding on the same facts had attained finality. On that basis, the goods were not treated as ceramic tiles for duty purposes.

Conclusion: The goods were held to be building bricks classifiable under heading 69.04 and covered by the exemption notification; the duty demand was unsustainable.

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