Mosaic tiles classifiable under Chapter 68 where trade evidence prevails and Chapter 69 conditions are not proved.

Trade and documentary evidence treated the goods as mosaic tiles in commercial parlance, and Chapter Note 2 of Chapter 69 was read as restrictive rather than enlarging. Because the Revenue did not produce material to displace the factual finding that the manufacturing process did not establish classification under Chapter 69, the goods remained classifiable under Chapter 68. On that basis, the exemption linked to Chapter 68 classification was not shown to be unavailable, and the Revenue challenge failed.

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Issues: Whether the products were classifiable as mosaic tiles under Chapter 68 or as ceramic goods under Chapter 69, and whether the products were entitled to exemption under Notification No. 55/86 dated 10.02.1986.

Analysis: The products had already been recognised in earlier proceedings and in the trade documents examined by the Collector (Appeals) as mosaic tiles in commercial parlance. Chapter Note 2 of Chapter 69 was held to be restrictive and not enlarging; it only excluded ceramic products fired before shaping from Chapter 69, but did not mandate that every mosaic tile must fall there. The evidence on the manufacturing process did not establish that firing occurred after shaping, and the Revenue did not produce contrary material to dislodge the factual finding of the Collector (Appeals). In the absence of such evidence, the finding that the goods were not shown to be classifiable under Chapter 69 was accepted.

Conclusion: The products were held to be mosaic tiles classifiable under Chapter 68, and the Revenue failed to show that the exemption was unavailable. The Revenue appeal was therefore rejected and the order-in-appeal was upheld.

Ratio Decidendi: Where the trade and documentary evidence establish that goods are mosaic tiles and the Revenue fails to prove that the process satisfies the conditions for Chapter 69 classification, Chapter Note 2 cannot be used to shift the goods into Chapter 69, and the exemption tied to Chapter 68 classification remains available.

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