Manufacture and classification of polished marble slabs confirmed; exemption available and duty demand failed for the earlier period.

Resin filling, grinding, cutting and polishing of imported marble slabs did not amount to manufacture for the relevant period, because the later chapter note deeming such activity as manufacture operated only prospectively. The Tribunal also treated polished marble slabs as classifiable under Chapter sub-heading 68022190, with residual tariff entries applying only where the goods do not fit the preceding classification. On that basis, the exemption under Notification No. 04/2006-CE was available, and the duty demand was not sustainable.

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Issues: Whether the processing of imported marble slabs by resin filling, grinding, cutting and polishing amounted to manufacture, and whether the goods were entitled to classification under Chapter sub-heading 68022190 and the benefit of Notification No. 04/2006-CE dated 01.03.2006.

Analysis: The Tribunal followed its earlier decision on identical facts and held that polished marble slabs fall under the relevant sub-heading for polished marble slabs, with the residual entries applying only when the goods do not fall under the preceding classification entries. It also noted the Board's clarification that polished marble slabs are appropriately classifiable under the said sub-heading and are eligible for the exemption notification. On the manufacturing question, the Tribunal applied the settled position that resin filling, polishing, cutting and similar processing of marble slabs did not amount to manufacture during the relevant period. The later insertion of a chapter note treating such activity as deemed manufacture was held to operate only prospectively and not for the earlier period in dispute.

Conclusion: The processing activity did not amount to manufacture for the relevant period, the classification and exemption benefit were admissible, and the duty demand could not be sustained.

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