Tin-coated clear float glass classification under customs tariff governs FTA exemption and defeats denial based on origin certificate code.

Clear Float Glass with a microscopically thin tin layer on one side was held to satisfy Chapter Note 2(c) to Chapter 70 and was classifiable under CTH 70051090, not CTH 70052990. On that basis, the preferential benefit under Notification No. 46/2011-Cus was upheld, and the Country-of-Origin Certificate could not displace Indian tariff classification merely because it mentioned a different HSN code. The extended limitation period was also found inapplicable because the dispute was one of classification, with no suppression or wilful misdeclaration; consequently, confiscation, redemption fine and penalties were not sustainable.

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Issues: (i) Whether imported Clear Float Glass was classifiable under CTH 70051090 or CTH 70052990; (ii) Whether the appellant was entitled to the FTA benefit under Notification No. 46/2011-Cus dated 01.06.2011; (iii) Whether denial of exemption on the basis of the Country-of-Origin Certificate showing HSN 70052990 was sustainable; and (iv) Whether the extended period, confiscation, redemption fine and penalties were invokable.

Issue (i): Whether imported Clear Float Glass was classifiable under CTH 70051090 or CTH 70052990.

Analysis: Classification was governed by the tariff heading, Chapter Note 2(c) to Chapter 70, and the General Rules for Interpretation. The material on record, including the test reports and the manufacturing process, showed that the goods were non-wired Clear Float Glass with a thin tin layer on one side, which answered the description of an absorbent or non-reflective layer. The argument that the layer had to be present only on the air side or that it must arise from a separate coating process was not accepted.

Conclusion: The goods were correctly classifiable under CTH 70051090 and not under CTH 70052990.

Issue (ii): Whether the appellant was entitled to the FTA benefit under Notification No. 46/2011-Cus dated 01.06.2011.

Analysis: Once the goods were found classifiable under CTH 70051090 and the origin conditions under the preferential trade framework were otherwise satisfied, the exemption could not be denied merely because the importing/exporting documentation referred to a different code. The Country-of-Origin Certificate was relevant for origin, but not determinative of Indian tariff classification.

Conclusion: The appellant was entitled to the benefit of Notification No. 46/2011-Cus dated 01.06.2011.

Issue (iii): Whether denial of exemption on the basis of the Country-of-Origin Certificate showing HSN 70052990 was sustainable.

Analysis: The Country-of-Origin Certificate could not override classification under Indian customs law. The imported goods had to be classified according to the tariff entries and chapter notes, and not solely on the HSN code reflected in the certificate issued in the exporting country. The denial of exemption on that sole basis was therefore unsustainable.

Conclusion: Denial of the exemption on the basis of the Country-of-Origin Certificate was not sustainable.

Issue (iv): Whether the extended period, confiscation, redemption fine and penalties were invokable.

Analysis: The department had been aware of the issue, earlier assessments had been provisionally assessed and finalized, and the dispute arose from a classification interpretation rather than suppression or wilful misdeclaration. In those circumstances, the larger limitation period could not be invoked. Once limitation failed, the consequential confiscation, redemption fine and penalty could not survive.

Conclusion: The extended period was not invokable and the confiscation, redemption fine and penalties were not sustainable.

Final Conclusion: The imported Clear Float Glass was held to merit classification under CTH 70051090, the exemption benefit was upheld, and the impugned orders were set aside with consequential relief.

Ratio Decidendi: Clear Float Glass with a microscopically thin tin layer on one side satisfies Chapter Note 2(c) to Chapter 70 and is classifiable under CTH 70051090; tariff classification must be determined under the Indian tariff and chapter notes, not by the HSN code shown in the Country-of-Origin Certificate.

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