Commercial identity of Mosaic Tiles determines exemption, and a different trade name alone does not defeat relief.

For exemption entries covering tiles known commercially as Mosaic Tiles, the decisive test is commercial understanding in the market, not the manufacturer's chosen invoice or catalogue description. Tiles marketed as Chequered Tiles, Rockard Tiles, Plain Cement Tiles and Paver Blocks were treated as falling within the commercial genus of Mosaic Tiles because their pattern, composition and end-use indicated a mosaic character, and the Revenue did not produce reliable negative evidence to disprove that market understanding. Supportive trade affidavits were also considered relevant. The products therefore remained eligible for exemption, and the demand, penalties and confiscation were not sustained.

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Issues: Whether tiles marketed as Chequered Tiles, Rockard Tiles, Plain Cement Tiles and Paver Blocks, though falling under chapter sub-heading 6807.90, were commercially known as "Mosaic Tiles" so as to qualify for exemption under the relevant notifications.

Analysis: The exemption was intended for "Mosaic Tiles, that is to say, tiles known commercially as Mosaic Tiles". The determining test was commercial understanding, not merely the trade name adopted by the manufacturer in invoices or catalogues. The records showed that the goods had a mosaic character, the Revenue did not establish by reliable negative material that they were not commercially known as Mosaic Tiles, and the assessee produced supportive affidavits from persons conversant with the trade. The pattern, composition, and end-use of the tiles brought them within the commercial genus of Mosaic Tiles. The interpretation adopted was also consistent with the earlier understanding that similar products such as terrazzo or unicoloured glass tiles may still be treated as Mosaic Tiles where the market so recognises them.

Conclusion: The tiles were commercially known as Mosaic Tiles and remained eligible for the exemption notwithstanding the individual trade names used by the manufacturer.

Final Conclusion: The Revenue failed to dislodge the assessee's claim to exemption, and the order dropping the demand, penalties, and confiscation was sustained.

Ratio Decidendi: For exemption entries using the expression "tiles known commercially as Mosaic Tiles", the decisive test is whether the goods are commercially understood as Mosaic Tiles in the market, and a different trade name by itself does not defeat exemption when no contrary market evidence is produced.

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