1997 (1) TMI 285 - AT - Customs

Summary

Issues: Classification of Zinc Dross under Tariff Heading 79.01 as waste and scrap of zinc or under Chapter Heading 26.02 as residue.

The judgment deals with the issue of classification of Zinc Dross, containing over 93% zinc content, under Tariff Heading 79.01 as waste and scrap of zinc or under Chapter Heading 26.02 as residue. The lower authority classified the goods under Tariff Heading 79.01, but the appellants argued for classification under Chapter Heading 26.02 as residue obtained after the galvanizing process with zinc slabs. The advocate for the appellants cited international classification NARI, specifically referring to the code word for the product "Scrub" at Sl. No. 72, describing the characteristics of the product. The advocate argued that the goods imported were residue and not waste and scrap falling under Chapter Heading 79.01.

The learned SDR contended that the imported goods were waste and scrap of zinc, as they were obtained from the virgin metal used in the electrolytic process. He referred to the ISI definition for Dross, which described it as waste and scrap of zinc. The SDR argued that the goods with 93% metal content could not be considered as ash or residue. The Tribunal examined the arguments presented by both sides and analyzed the relevant tariff headings. Chapter 26 pertains to Metal Ores, Slag, and Ash, while Tariff 2602/04 covers Slag, Ash, and Residue containing metals or metallic contents. The Tribunal noted that the goods in question were not obtained from metallic ores but from the electrolytic process with zinc sheets. The NARI Circular NF-82 was referenced, which standardizes classifications for non-ferrous scrap metals. The Tribunal concluded that the appellants' goods were rightly classified under Tariff Heading 79.01 as waste and scrap of zinc, dismissing the appeal.

In summary, the judgment resolved the issue of classification of Zinc Dross, emphasizing the distinction between waste and scrap under Tariff Heading 79.01 and residue under Chapter Heading 26.02. The Tribunal considered the nature of the goods, the process of their extraction, and the relevant international classifications. Ultimately, based on the analysis of the applicable tariff headings and the characteristics of the imported goods, the Tribunal upheld the classification under Tariff Heading 79.01, affirming the lower authority's decision and dismissing the appeal.