Carbon classification under Heading 28.03 fails for charcoal dust absent proof it consists wholly of carbon.

Charcoal dust generated during the manufacture of activated carbon was held not classifiable as carbon under Heading 28.03 of the CETA Schedule. The tariff notes exclude activated carbon and wood charcoal from that heading, and the product was described only as carbonaceous matter from the pre-activation stage, not as a commodity shown to consist wholly of carbon. Because the department bore the burden on classification and produced no evidence of complete carbon content, the duty demand based on Heading 28.03 could not be sustained. The later inclusion of wood charcoal under Heading 44.02 also supported exclusion from Heading 28.03.

---

---

Issues: Whether charcoal dust generated during the manufacture of activated carbon was classifiable under Heading 28.03 of the CETA Schedule as carbon, and whether the resulting duty demand and penalty could be sustained.

Analysis: Heading 28.03 covers carbon and other forms of carbon not elsewhere specified or included. The HSN notes exclude activated carbon and wood charcoal from that heading. The product in dispute was a dust generated in the pre-activation process from wood charcoal and was described in the department's report only as carbonaceous matter, not as a commodity wholly composed of carbon. The department, which bore the burden on classification, adduced no evidence to show that the goods consisted entirely of carbon. The later inclusion of wood charcoal under Heading 44.02 also supported the view that the product did not fit within Heading 28.03.

Conclusion: Charcoal dust was not classifiable under Heading 28.03, and the duty demand based on that classification could not be sustained. The appeal was allowed in favour of the assessee.

Ratio Decidendi: A carbonaceous by-product is not classifiable as carbon under Heading 28.03 unless it is shown to consist wholly of carbon and is otherwise not excluded by the tariff notes.

---