2025-VIL-1121-CESTAT-CHE-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise – Classification of Bricks, Sand Lime Bricks (SLB) or Cement Bricks – Appellant manufactured bricks using a mixture of Sand (approx. 72.6%), Lime (approx. 5.8%), Gypsum (2.6%), and Cement (10-13%) as an additive, which were hardened through an autoclaving process - The assessee classified goods as 'Sand Lime Bricks' (SLB) under tariff sub-heading 6810 11 90 and claimed the benefit of an exemption notification. The Revenue sought to re-classify the product as 'Cement Bricks' under sub-heading 6810 11 10 - Whether the bricks manufactured by the assessee are to be classified as 'Sand Lime Bricks' under CETH 6810 11 90 or as 'Cement Bricks' under CETH 6810 11 10, based on their composition and manufacturing process - HELD - The classification must be determined by the essential character of the product. The predominant and essential ingredients are Sand and Lime, which chemically react to form Calcium Silicate, the primary binding agent. The presence of cement in a relatively small quantity (10-13%) as an additive or binder does not alter the fundamental nature of the product to make it a 'Cement Brick', which would require cement to be the essential ingredient - The Harmonised System of Nomenclature (HSN) Explanatory Notes to heading 6810 explicitly cover articles made from a mixture of sand, lime, and water that are steam-treated in an autoclave, which perfectly describes the assessee's product. The Revenue's reliance on the nomenclature of the AAC machinery is misplaced, as the use of modern technology for production does not change the product's classification, and the same machinery can be used for SLB - Furthermore, the Revenue failed to discharge the burden of proof required to justify a re-classification, as it did not provide any final or conclusive expert reports to substantiate its claim, instead relying on incomplete tests and statements from competitors who are not experts. There being no evidence to justify the re-classification, the assessee's declared classification is to be accepted - The orders confirming the re-classification and demanding differential duty are set aside - The appeals are allowed
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