2024 (2) TMI 1353 - AAR - GST

Clear float glass classified under CTH 7005 29 as tin layer incidental to manufacturing process

The AAR Tamil Nadu ruled on the classification of clear float glass imported by the applicant. The authority determined that the product is non-wired ... Appropriate classification of the product ‘Clear Bloat Glass’, which is imported and traded by the Applicant - whether the said product is classified under CTH 70052990 or to be classified under the CTH 7005 1090?. Whether the subject goods ‘Float Glass’ is wired or not wired glass? - HELD THAT:- It is found that no wire mesh is reinforced in the glass during the manufacturing process. Hence the subject goods is ‘Non-wired Glass’. Coming to the next part of the description of the chapter heading 7005 10 i.e. absorbent, reflecting or non-reflecting layer, from the above chapter notes, in specific, under 2(c), it is found that what is intended to be classified under the hearing 7005 10 is glass coated with an absorbent, reflecting or non-reflecting layer, ft is made clear, in this notes that the absorbent layer is a microscopically thin coating of metal or metal oxide which has to be applied during the manufacturing process itself to the glass before the process of annealing, so as to not regard the glass as worked upon, as stated in notes 2(a). Whether the layer of tin present in the float glass will satisfy the requirement as an absorbent layer, reflecting or non-reflecting? - HELD THAT:- Beyond the regular process of manufacture of float glass, no additional coating of any layer, as mentioned in the explanatory notes above, which would serve as an absorbent, reflecting or non-reflecting layer is carried out. The argument of the Applicant that tin layer is the absorbent layer, cannot be accepted as tin is not used in float glass process with the specific objective of providing any absorbent, reflecting or non-reflecting layer. It is evident that the presence of tin is by default and on account of manufacturing process and not by design or intended to add a layer with any of the properties such as absorption or reflection or non-reflection. Thus the tin layer is incidental to the manufacturing process of float glass and is not done specifically for an intended purpose/use. The float glass has not undergone any coating process for presence of an absorbent, reflecting or non-reflecting layer and hence cannot be classified under sub-heading 7005 10. Further, as it is also not coloured throughout the mass (body tinted), opacified, flashed or merely surface ground, the item would not be covered under the sub-heading 7005 21. Hence the appropriate classification for ‘clear float glass’ would be under the tariff sub heading 7005 29 as ‘Others’. At the eight digit level, if the item is ‘tinted’, it would be classifiable under the CTH 7005 2910 and if the item is ‘non-tinted’, it would be classifiable under CTH 7005 2990 of the Customs Tariff Act, 1975. The Applicant is an importer as well as a trader - As a trader, for trading the same goods imported in that particular consignment, the Applicant has to follow the classification approved and assessed by the Customs Authorities for that consignment, for which duty was paid by them agreeing to/accepting the assessment. The question of following a different CTH for trading purposes, for the same goods imported and assessed, does not arise. The appropriate classification for ‘clear float glass’ is under the tariff sub-heading 7005 29 as ‘Others’ and at the eight digit level, if the item is ‘tinted’, it is be classifiable under the CTH 7005 2910 and if the item is ‘non-tinted’, it is be classifiable under CTH 7005 2990 of the Customs Tariff Act, 1975. Issues Involved:1. Classification of 'Clear Float Glass with Absorbent Layer'2. Binding nature of Advance Ruling3. Validity and applicability of test reports and previous rulingsSummary:1. Classification of 'Clear Float Glass with Absorbent Layer':The Applicant, engaged in import trading of glass products, sought an advance ruling on the classification of 'Clear Float Glass with Absorbent Layer'. The Applicant argued that the product should be classified under CTH 7005 10 90, supported by test reports and previous rulings. However, the Authority found that the tin layer present in the glass is incidental to the manufacturing process and not an intended absorbent layer. The Authority concluded that the product does not meet the criteria for classification under 7005 10. Instead, it should be classified under tariff sub-heading 7005 29 as 'Others', and at the eight-digit level, it would be under CTH 7005 2910 if tinted, or CTH 7005 2990 if non-tinted.2. Binding Nature of Advance Ruling:According to Section 103(1) of the CGST/TNGST Act, the advance ruling is binding only on the applicant and the concerned officer. Section 103(2) states that the ruling is binding unless there are changes in the law, facts, or circumstances. Section 104 allows the Authority to declare a ruling void if obtained by fraud or misrepresentation.3. Validity and Applicability of Test Reports and Previous Rulings:The Authority noted that the test report dated 04.02.2019 pertains to specific bills of entry from 2018 and cannot be generalized. The Applicant's reliance on previous rulings and orders by the Commissioner of Customs (Appeals) was also found to be inapplicable in general, as these rulings are binding only on the specific cases they were issued for. The RTI report provided by the Applicant was also specific to certain bills of entry and not applicable to the general classification question.Ruling:The appropriate classification for 'clear float glass' is under tariff sub-heading 7005 29 as 'Others'. At the eight-digit level, if the item is 'tinted', it is classifiable under CTH 7005 2910, and if 'non-tinted', it is classifiable under CTH 7005 2990 of the Customs Tariff Act, 1975.