Clear Float Glass classified under CTH 7005 1090 due to microscopic tin layer making it absorbent and non-reflective

CESTAT Kolkata ruled that Clear Float Glass (CFG) should be classified under CTH 7005 1090 rather than CTH 7005 2990 of the Customs Tariff Act. The tribunal found that CFG contains a microscopic tin layer making it absorbent and non-reflective, satisfying Chapter Note 2(c) requirements. The classification was supported by domestic manufacturers' practices and RTI clarification confirming the tin layer's absorbent properties. Consequently, the appellant qualified for exemption benefits under Notification 046/2011-CUS. The original adjudication order was set aside and appeal allowed.

---

---

Issues Involved:
1. Classification of Clear Float Glass (CFG)
2. Entitlement to benefit under Notification No. 046/2011-CUS dated 01.06.2011

Summary:

1. Classification of Clear Float Glass (CFG):
The appellant, a regular importer of Clear Float Glass (CFG), classified the goods under Tariff Item 7005 10 90 of the Customs Tariff Act (CTA) and claimed benefits under Notification No. 046/2011-CUS dated 01.06.2011. The adjudicating authority classified the CFG under CTH 7005 2990, denying the benefit of the notification. The appellant argued that the tin layer present in CFG is an absorbent layer as per Chapter Note 2(c) of Chapter 70, which defines an absorbent layer as a "microscopically thin coating of metal or of a chemical compound." The tribunal agreed with the appellant, finding that the manufacturing process of CFG involves a tin layer, which qualifies as an absorbent layer under Chapter Note 2(c). Consequently, the correct classification of CFG is under CTH 7005 1090.

2. Entitlement to Benefit under Notification No. 046/2011-CUS dated 01.06.2011:
The tribunal noted that manufacturers in India, such as M/s. Saint-Gobain India Pvt. Ltd. and M/s. Goldplus Float Glass, classify CFG under CTH 7005 1090, which has been accepted by the department. The tribunal also referenced rulings from the Advance Ruling Authority and previous orders by the Commissioner (Appeals) supporting the classification of CFG under CTH 7005 1090. Given that the appellant's CFG meets the criteria of having an absorbent layer, the tribunal held that the appellant is entitled to the benefit of Serial No. 934 (I) of Notification No. 046/2011-CUS dated 01.06.2011. Thus, the appeals were allowed with consequential relief.

---