Tariff classification of zinc dross depends on strict proof of zinc alloy criteria, not an unquantified test report.

Classification of zinc dross and ash for tariff purposes turned on strict satisfaction of the tariff definition of zinc alloy. The chemical test report showed zinc with traces of iron and silicon, but it did not quantify the other elements or establish that zinc predominated by weight over each other element and that the other elements exceeded 2.5%, as required by Chapter 79, Note 1(b). On that evidence alone, classification under the zinc alloy heading could not be sustained. The goods were instead classifiable under sub-heading 2620.00 as ash and residues containing metals, and the differential duty demand was therefore unsustainable.

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Issues: Classification of zinc dross and ash for tariff purposes, and consequential liability to differential duty.

Analysis: The goods arose in the galvanization process and the chemical test report showed zinc content together with traces of iron and silicon, but it did not establish that the sample satisfied the tariff definition of zinc alloys. Under Sub-heading Note 1(b) in Chapter 79, zinc alloy requires zinc to predominate by weight over each other element and the total content of the other elements to exceed 2.5%. The sole basis for classification under zinc alloy was the test report, which did not quantify the other elements or support the statutory requirement. The claim for classification as ash and residues containing metals was also not negatived by any reasoned finding in the impugned order.

Conclusion: The goods were classifiable under sub-heading 2620.00 and not under sub-heading 7901.20; the differential duty demand was unsustainable.

Final Conclusion: The appeal succeeded and the assessee obtained relief against the disputed classification and duty demand.

Ratio Decidendi: For classification as zinc alloy, the tariff definition must be strictly satisfied on the basis of evidence showing both zinc predominance and the requisite content of other elements; a test report that does not establish those statutory criteria cannot sustain classification under the alloy heading.

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