Case Brief:Kedia Agglomerated Marbles Ltd. Vs. Collector of Central Excise

Deciding Authority: Supreme Court of India
Date of Judgement: 14th January, 2003
Bench: Justice M.B.Shah and Justice D.M. Dharmadhikari
Facts of the Case: The appellant M/s Kedia Agglomerated Marbles Limited is engaged in manufacture of floor tells which are marketed by them in the trade name “Marbella Agglomerated Marbles” and “Marbellam Tiles.” The product of the appellant is classified under tariff heading 68.07 for the purpose of excise duty under the Central Excise Tariff Act (for short ’the Act’). The above classification of the appellant’s product under Tariff heading 68.07 has been confirmed by order dated 21.6.1993 passed by the Collector of Customs and Central Excise (Appeals), Ahmedabad. On the basis of the aforesaid classification of its product under Tariff heading 68.07, appellant claimed exemption from payment of duty under Notification No. 59/91-CE date 20.301990 issued by the Central Government in exercise of powers conferred by sub-section (1) of Section 5A of the Central Excise Act. Under the aforesaid exemption notification, ’mosaic tiles that is to say tiles known commercially as mosaic tiles’ included in Tariff heading 68.07 are exempt from payment of duty. The appellant’s case that the tiles manufactured by it are commercially known as mosaic tiles and are entitled to exemption was accepted by the Collector of Central Excise (Appeals) by order.
Judgement of the Case: The Supreme Court held that on a wholly irrelevant and unsubstantial ground the well reasoned orders of the lower authorities were upset by the Tribunal and benefit of exemption notification was wrongly denied to the appellant. The appellant before the authority has produced sufficient material to demonstrate that the tiles manufactured by it with use of marble chips and crushed stones or marble are also known in the market as “mosaic tiles” like other “mosaic tiles” in which stones or articles other than marble are used. Consequently, this appeal succeeds and is hereby allowed. The impugned order of the CEGAT dated 24.3.1995 is hereby set aside and the orders passed by the Assistant Collector of Central Excise dated 5.8.1991 and Collector of Central Excise (Appeals), Ahmedabad dated 21.6.1993 are restored. In the circumstances there shall be no order as to costs.