Clear float glass with tin layer classified under CTH 7005 29 90 not 7005 10 90 per Customs Tariff Act 1975

The AAAR Tamil Nadu ruled that clear float glass should be classified under CTH 7005 29 90 rather than CTH 7005 10 90 under the Customs Tariff Act, 1975. The authority determined that while the glass contains a tin layer on one side that fluoresces under UV illumination, this is inherent to the float glass production process and not an applied coating constituting an "absorbent layer." The classification was supported by the country of origin certificate from Malaysia changing its classification code from 7005 10 90 to 7005 29 90, indicating conscious correction of previous anomaly.

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Issues Involved:
1. Classification of 'Clear Float Glass' under the Customs Tariff Act, 1975.
2. Validity and applicability of test reports and prior rulings.
3. Relevance of Country of Origin Certificate and international classification norms.
4. Binding nature of Advance Rulings and their persuasive value.

Summary of Judgment:

1. Classification of 'Clear Float Glass':
The primary issue is the correct classification of 'Clear Float Glass' under the Customs Tariff Act, 1975. The Authority for Advance Ruling (AAR) classified it under tariff sub-heading 7005 29 as 'Others', and at the eight-digit level, if tinted, under CTH 7005 2910, and if non-tinted, under CTH 7005 2990. The Appellant contended that the product should be classified under CTH 7005 1090, citing the presence of an absorbent layer (Tin) on one side of the glass.

2. Validity and Applicability of Test Reports and Prior Rulings:
The Appellant relied on a test report from the Central Glass and Ceramic Research Institute, Kolkata, which confirmed the presence of a tin layer. However, the report did not indicate any additional coating process, which is essential for classification under 7005 10. The Appellant also cited various rulings and decisions, including those from the Customs Authority for Advance Ruling, Mumbai, and the Hon'ble CESTAT, Kolkata, which supported their classification under CTH 7005 1090. The Appellate Authority noted that the test report from 2019 was not contemporaneous and could not be applied to the current imports.

3. Relevance of Country of Origin Certificate and International Classification Norms:
The Country of Origin Certificate from Malaysia recently changed the classification code to 7005 29 90, suggesting a deliberate correction. The Appellate Authority emphasized the importance of international classification norms under the Harmonized System of Nomenclature (HSN), which is followed by member countries of the World Customs Organization (WCO).

4. Binding Nature of Advance Rulings and Their Persuasive Value:
The Appellant argued that advance rulings have persuasive value even if they are not binding on third parties. The Appellate Authority acknowledged this but clarified that such rulings are binding only on the applicant and the concerned officers as per Section 103(1) of the CGST Act, 2017. The Authority also noted that the classification under GST should align with the Customs Tariff Act, 1975.

Conclusion:
The Appellate Authority upheld the AAR's decision, ruling that 'Clear Float Glass' merits classification under Customs Tariff Heading 7005 29 90 of the Customs Tariff Act, 1975. The ruling emphasized that the presence of a tin layer, inherent to the manufacturing process, does not qualify as an absorbent layer required for classification under 7005 10.

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