Tariff classification of paver blocks as building blocks upheld for concessional duty under the notification.

Paver blocks were held classifiable as "building blocks" under the tariff description and eligible for concessional duty under Notification No. 10/03-C.E. The Tribunal applied common parlance to the classification dispute and held that IS specifications do not control tariff entry interpretation unless adopted by the tariff itself. It also reaffirmed that end-use cannot govern classification where the entry does not refer to use. On that basis, "building blocks" was read broadly to cover blocks used in construction generally, including pavements, footpaths, parking areas and courtyards, and the residuary entry was rejected.

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Issues: Whether paver blocks manufactured and cleared by the assessees were classifiable as "building blocks" eligible for concessional duty under Notification No. 10/03-C.E. dated 01.03.2003, or whether they fell under the residuary tariff entry and were ineligible for the concession.

Analysis: The classification had to be determined on the basis of the tariff description and the understanding of the expression in common parlance. The Tribunal applied the settled principle that IS specifications cannot control tariff classification where the tariff itself does not adopt them, and that end-use cannot govern classification when the entry does not refer to use. It also held that the expression "building blocks" is not confined to blocks used only in vertical structures, but extends to blocks used in construction of structures generally, including pavements, footpaths, parking areas and courtyards. Since the paver blocks were identical to those considered in the cited precedent, the reasoning applied fully to the present appeals.

Conclusion: The paver blocks were correctly classifiable as "building blocks" and qualified for concessional duty under the notification. The Revenue's view based on the residuary entry was rejected, and the assessees succeeded.

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