TaxTMI 
TaxTMI 
2016 (11) TMI 310
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.... mosaic chequered tile, terrarock / terrastore tiles, paver blocks etc. falling under Chapter Heading No. 68.07 of the Central Excise Tariff Act, 1985 and were claiming exemption from payment of duty under Notification No.10/2003 dated 01.02.2003. During investigation by Central Excise officers, the dept. took objection against the appellants availing exemption under Notification No. 10/2003 dated 01.02.2003 on these tiles, prima facie on the ground that the same are not commercially known as Mosaic tiles. Accordingly, vide order dated 20.05.2004, the future clearances of the tiles from the appellants factory were ordered to be assessed provisionally on execution of Bond with Bank Guarantee for 25% of the Bond amount. The order for provisio....
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....en such a decision is taken by the Commissioner, the question also should have been whether there is the presence of chips or not. When such a question is not asked and when there is no definite answer to it, based on the report, the Commissioner cannot come to the conclusion that they had not used the stone chips. Further, the Commissioners conclusion is also based on the investigation, which according to him revealed that except for a short period, the appellants never purchased this stone chips. This is based on the documents/registers seized form the appellants premises. Even the General Manager Sh. Balagopal in his statement dated 25-11-2004 referring to the manufacture of tiles has stated that the stone chips are being used which are....
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....ading in the goods is relevant. 10. The appellant had also produced the opinion of an expert architect, which has not been considered by the ld. Commissioner, According to the architect, the products manufactured by the appellants will come under the category of mosaic tiles. The report of the architect is reproduced below : "Sir, I have gone through your letter describing the process of manufacture and listing out the raw materials used in the manufacture of your tiles. I have also perused your product brochure. I have also seen the samples of your tiles and their cut sections. I have observed that the process of manufacture and the raw materials are same in the case of mosaic tiles meant for internal flooring. In my opinion th....
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....have been given the benefit of exemption notification. For examples, in the case of M/s. Basant Flooring Pvt. Ltd., the impugned items were similar to the paving tiles, which are interlocking pavers. Revenue proceeded against the appellant and then it was decided to drop the proceedings and this has not been appealed against by the Revenue. In the case of M/s. Golden India Tiles Company Ltd., the goods were described as Terrazo tiles,. In this case also, the proceedings were dropped. In the Nitco Tiles Ltd. Case, chequered tiles, rockard designer tiles and decorative interlocking paver tiles were described as exterior mosaic tiles. Action was initiated by the Revenue. In all these cases, relying on the decision of the Hon'ble Apex Court in ....