Customs classification of gold plating salts turned on invoice description and lack of proof of gold alloy status.

Imported special gold alloy plating salts were treated as plating salts and chemicals under Chapter 28 because the invoice described them that way and no contrary evidence was produced. The revenue failed to prove that the goods were alloys of gold within Note 4(b) of Chapter 71. Applying Chapter Note 2(vi) of Chapter 28 for compounds of precious metals, and finding no fit under a specific sub-heading in Heading 28.01/58, the goods were placed in the residuary sub-heading (1). Classification under Heading 71.05/11(1) was rejected, and reassessment of duty followed in favour of the assessee.

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Issues: Whether the imported goods described as special gold alloy plating salts were classifiable as an alloy of gold under Chapter 71 or as plating salts falling under Chapter 28 of the Customs Tariff Act, 1975.

Analysis: The classification had to be determined on the material on record. The invoice described all the items as special gold alloy plating salts, and no evidence was produced to displace that description. The revenue also failed to adduce evidence to establish that the goods were alloys of gold within the meaning of Note 4(b) of Chapter 71. In the absence of contrary proof, the goods were accepted as plating salts, i.e. chemicals, and Chapter Note 2(vi) of Chapter 28 applied to compounds of precious metals. Since the goods did not answer any specific sub-heading within Heading 28.01/58, they fell under the residuary sub-heading (1) of that heading.

Conclusion: The goods were not classifiable under Heading 71.05/11(1) and were correctly classifiable under sub-heading (1) of Heading 28.01/58, with consequential reassessment of duty in favour of the assessee.

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