Commercial identity controls tariff classification and exemption: agglomerated marble tiles fell under Heading 68.07 and were not mosaic tiles.

Agglomerated marble blocks and tiles manufactured from crushed marble mixed with cement, resin and other additives were held to be articles of Heading 68.07, not marble under Heading 25.04, because they were not mineral products in the form of marble. For exemption under Notification No. 59/90, the decisive question was whether the goods were commercially known as mosaic tiles. The evidence, including affidavits, invoices and the assessee's literature, did not establish that market recognition. Commercial understanding was treated as controlling over dictionary meaning, and the claimed exemption was therefore unavailable.

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Issues: (i) Whether agglomerated marble blocks/tiles were classifiable under Heading 25.04 or Heading 68.07 of the Central Excise Tariff; (ii) Whether agglomerated marble tiles were commercially known as mosaic tiles and therefore eligible for exemption under Notification No. 59/90 dated 20-3-1990.

Issue (i): Whether agglomerated marble blocks/tiles were classifiable under Heading 25.04 or Heading 68.07 of the Central Excise Tariff.

Analysis: The product was manufactured from crushed marble mixed with cement, resin and other additives and was not a mineral product in the form of marble. Heading 25.04 covered marble, whereas the goods were articles produced mainly from crushed marble and other materials. Note 2 to Chapter 25 was found inapplicable to the competing entry relied upon by the assessee.

Conclusion: The goods were correctly classifiable under Heading 68.07 and not under Heading 25.04.

Issue (ii): Whether agglomerated marble tiles were commercially known as mosaic tiles and therefore eligible for exemption under Notification No. 59/90 dated 20-3-1990.

Analysis: The exemption depended on whether the goods were commercially known as mosaic tiles. The affidavits relied upon were found unreliable because they were identically worded and appeared to be procured for the case. The assessee's own literature and invoices described the product as agglomerated marble or Marbellam tiles, not as mosaic tiles. In taxing matters, commercial understanding prevails over dictionary meaning, and the evidence did not establish market recognition as mosaic tiles.

Conclusion: The tiles were not shown to be commercially known as mosaic tiles and were not entitled to exemption under Notification No. 59/90 dated 20-3-1990.

Final Conclusion: The classification of the goods under Heading 68.07 was upheld and the claimed exemption was denied, resulting in acceptance of the Revenue's challenge.

Ratio Decidendi: In tariff classification and exemption disputes, the commercial identity of the goods in the trade governs, and an exemption cannot be granted unless the claimant proves that the goods satisfy the specific commercial description in the notification.

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