2002 (10) TMI 302 - AT - Central Excise

Summary

Issues: Classification of zinc dust under Chapter sub-heading 7903.10 and benefit of Notification No. 184/88

Classification of Zinc Dust:
The issue involved in this case was the classification of various grades of zinc dust under Chapter sub-heading 7903.10. The appellant claimed that the zinc dust, manufactured from zinc ingots received under chapter X procedure, should be classified as zinc dust and benefit from Notification No. 184/88. The Assistant Commissioner (AC) disagreed, stating that the item should be considered zinc powder under the residuary heading 7903.90. The appellant argued that their atomization process, different from the conventional method, produced finer quality zinc dust. They relied on a Supreme Court judgment emphasizing the consideration of the latest technology for classification. The Commissioner, considering the advanced manufacturing process and test results, classified the product as zinc dust under Chapter Heading 7903.10, a decision challenged by the Revenue.

Arguments and Analysis:
The Revenue contended that zinc dust should be classified as zinc powder based on the process of manufacture outlined in the HSN. They argued that the appellant's product did not meet the criteria specified, as no test report was provided. However, the appellant presented test results showing that their zinc dust met the requirements of sub-heading Note 1(c) of Chapter 79. The Chief Chemist confirmed that the zinc dust passed through a sieve with 53 to 75 microns, satisfying the criteria. The appellant relied on the Commissioner's decision, supported by the Supreme Court's judgment, to uphold the classification as zinc dust.

Judgment and Conclusion:
Upon review, it was found that the appellant's zinc dust met the specifications outlined in the sub-heading Note 1(c) of Chapter 79. The product consisted of spherical particles, with over 90% passing the sieve test, and contained more than 98% metallic zinc. The Commissioner's decision to classify the product as zinc dust under Chapter sub-heading 7903.10 was upheld, as the Revenue failed to provide evidence contradicting the compliance with tariff notes. The judgment considered the advanced manufacturing process and test results, concluding that the classification as "zinc dust" was appropriate. The appeals were dismissed, and the cross appeals were disposed of accordingly, affirming the Commissioner's classification decision based on the latest technology and test results.