TaxTMI 
TaxTMI 
2023 (10) TMI 1381
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....ential tariff treatment) under Notification No. 46/2011-Customs : dated 01.06.2011. 2. The applicant submitted that they are specializing in trading of processed glass used for various applications like industrial facades, interiors, shower panels, exterior glazing, solar panels, furniture, pergolas, etc. and for the manufacture of the said glass products, the Applicant is intending to import the Clear Float Glass having an absorbent -non-reflective layer of Tin on one side of the glass (hereinafter referred to as 'the Clear Float Glass' also) from Malaysia and sell the final product to the distributors, retailers and customers in India. The Clear Float Glass is distortion-free, precision flat and transparent glass. It is made of molten glass which flows through tweel to the molten tin bath and then to lehr. While floating through the molten tin, the glass under the works of gravity and surface tension becomes smooth and flat on both sides. Due to special processing technology and high-purity raw materials, flat glass has flatness, a smooth surface, no water ripples and impurities. Clear float glass exhibits excellent optical transmission, with the transmittance being arou....
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....eets; (c) the expression "absorbent, reflecting or non-reflecting layer" means a microscopically thin coating of metal or of a chemical compound (for example, metal oxide) which absorbs, for example, infra-red light or improves the reflecting qualities of the glass while still allowing it to retain a degree of transparency or translucency; or which prevents light from being reflected on the surface of the glass. Further, the applicant, citing above mentioned HSN Explanatory Notes to CTH 7005, Note 2(c) to Chapter 70 and the relevant tariff entries under CTH 7005 of the First Schedule to the Custom Tariff Act read with Rule 1 of General Rule of Interpretation has submitted that Note 2(c) only states that the metal coating or chemical coating on glass can be said to be absorbent if it absorbs, for example, infrared light. It nowhere prescribes the process through which the said coating/absorbent is to be applied to the glass. The HSN Explanatory Notes to CTH 7005 also do not prescribe any specified manner in which the coating of metal/absorbent is to be obtained. Therefore, the clear float glass can be said to be absorbent as long it has a coating of tin metal, irrespective of whe....
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....ent layer which illuminates under UV light: i. M/s. Chandrakala Associates, CAAR/Mum/ARC/36/2021 dated 24.09.2021, and ii. M/s. Suraj Constructions, CAAR/Muni/ARC/10/2022 dated 10.05.2022 and further, has submitted that in both the rulings mentioned above, the Customs Authority for Advance Rulings held that "Heading 7005 10 covers non-wired glass having an absorbent, reflecting or non-reflecting layer and the Headings 7005 21 to 7005 29 deal with non-wired glasses which are body tinted, pacified, flashed etc. Therefore, the subject goods should more appropriately be covered under sub-heading 7005 10 90." It is to be noted that the 'clear float glass' which is the subject matter of the aforementioned Rulings is essentially the same product which the Applicant proposes to import. The Customs Authority for Advance Rulings in the matter of M/s. Suraj Constructions (supra) has ruled that if the Clear Float Glass is classifiable under CTI 7005 1090 based on its nature, characteristics & properties, then it would remain eligible for the benefit of exemption, irrespective of the IIS code mentioned in the COOs by the foreign supplier. The relevant portion of the Ruling reads as foll....
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....e Commissioner of Customs, Cochin Custom House, 4. The Commissioner of Customs (Nhava Sheva -III), Jawaharlal Nehru Customs House, Accordingly, copy of the application was sent to the above jurisdictional authorities, seeking comments on the application for advance rulings. However, CAAR, Mumbai has received comments only from the Commissioner of Customs, Cochin Custom House on 12.06.2023 and the Commissioner of Customs (Nhava Sheva -III), Jawaharlal Nehru Customs House on 24.05.2023 which are discussed here-in-after. 8.1. It is inter alia stated in the comments received from the Jurisdiction, Cochin Custom House that the float glass has not undergone any coating process (coating as absorbent, reflecting or non-reflecting layer) and cannot be classified under the Tariff Sub Heading 7005 10. The occurrence of tin layer on one side of the float glass does not make the glass have an absorbent, reflecting or non-reflecting layer. Further, as it is also not coloured throughout the mass (body tinted), pacified, flashed or merely surface ground, the item would not be covered under the Sub heading 7005 21. Hence, the appropriate classification for "clear float glass" would be under the ta....
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....g coating is usually applied on the float line at high temperature during the manufacturing process to the air side of the glass using Chemical Vapour Deposition (CVD) process or soft coating which involves a coating of reflecting layer through splutter coating after the float glass manufacturing process. As evident from the information available on various online platforms, related to the manufacturing process of Float glass, Chemical Vapour Deposition (CVD) is an online pyrolytic coating technology integrated directly into the float glass manufacturing process. Depending on the desired end product one or several coatings can be applied. Coatings can be applied inside the tin bath or at the Lchr entry or both. Further, Chapter Note 2(c) makes specifically clear that the float glass shall be regarded as that having an absorbent layer, when it is coated with a microscopically thin coating of metal or of a chemical compound. Hence, it is a fact that any float glass said to have an absorbent layer will invariably be coated with a microscopically thin coating of metal or metal oxide, provided the coating is done on-line i.e. during the process of manufacturing of float glass, and befo....
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....1-Customs dated 01.06.2011 under Sl. No. 935(1). 10. Personal hearing in the matter was held on 14.09.2023 through virtual mode wherein the authorized representatives of the applicant while explaining the goods in question referred to earlier ruling issued by CAAR, Mumbai in support of classification claimed by them. They also referred to Note 2(c) to Chapter 70 and mentioned that all conditions of said note have been satisfied by the goods in question which they intend to import. They also mentioned that they have not imported the goods in question in the past. They reiterated the submissions made in the application for advance ruling. Shri Ankush Salame, DC, Group-III, NS-III, JNCH explained their earlier submission which was received in office of the CAAR, Mumbai on 24.05.2023 and AC, Group-III, Chennai-II (Import Commissionerate) submitted that they concur with the views of the Jurisdiction JNCH in the matter. 11. The applicant further submitted their rejoinder through E-Mail on 18.09.2023 in office of the CAAR, Mumbai in respect of the comments made by Shri Ankush Salame and AC, Group-III, Chennai-II (Import Commissionerate). Vide said rejoinder the applicant submitted that ....
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....e of the origin of the countries as mentioned in Appendix-I, in accordance with provisions of the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 189/2009-Customs (N.T.), dated the 31st December 2009. 13. CBIC issues notifications for implementing tariff concessions and rules of origin, under section 25 of the Customs Act, 1962 and section 5 of the Customs Tariff Act, 1975 respectively, in order to incorporate the commitments undertaken in domestic legislation. Under a trade agreement, duty concessions are required to be extended only to such imported goods which are 'made in' the exporting country. Each FTA contains a set of rules of origin, which prescribe the criteria that must be fulfilled for goods to attain 'originating status' in the exporting country. Such criteria are generally based on factors such as domestic value addition and substantial transformation in the course of ....
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....Hence, it is invariably made evident, that the clear float glass can only have an absorbent layer, if it has undergone the coating process by virtue of CVD-Chemical Vapour Deposition. The comments of Jurisdiction JNCH is noteworthy that the clear float glass, has parallel sides, one side of which is known as the tin side and the other side as the air side. All glass manufactured under the float process (clear, coated or tinted) invariably would contain a layer of tin on one side, which does not mean that the float glass is to be classified under 7005 10. I am of the view that any float glass said to have an absorbent layer will invariably be coated with a microscopically thin coating of metal or metal oxide, provided the coating is done on-line i.e. during the process of manufacturing of float glass, and before the process of annealing, so that the glass isn't regarded as worked. If otherwise, the float glass has to be regarded as one having no absorbent layer. 15. I also agree with the submissions and explanation of the relevant MS code presented by Jurisdiction Cochin. The float glass has not been undergone any coating process (coating as absorbent, reflecting or non-reflect....