Tariff classification of nickel-iron goods turned on their iron-based alloy steel character, securing concessional exemption benefits.

Imported goods containing 36 per cent nickel and the balance iron were treated as iron-based alloy steel products for tariff purposes, because their predominant character was determined from their proven composition and supplier specifications. On that basis, classification under Heading 73.15(1) of the Customs Tariff Act, 1975 was accepted rather than Heading 75.03. The same factual classification made Notification No. 77/77-Cus. applicable, so concessional reassessment followed. An alternative claim for complete exemption was not pursued and therefore did not require adjudication.

---

---

Issues: (i) whether the goods were correctly classifiable under Heading 73.15(1) of the Customs Tariff Act, 1975 as alloy steel products rather than under Heading 75.03; (ii) whether Notification No. 77/77-Cus. applied to the goods so as to entitle the appellants to concessional assessment.

Issue (i): whether the goods were correctly classifiable under Heading 73.15(1) of the Customs Tariff Act, 1975 as alloy steel products rather than under Heading 75.03.

Analysis: The goods were shown by the supplier's certificate and specification to contain 36 per cent nickel and the balance iron. On that material, the predominant character of the goods was that of iron-based alloy steel products. The objection that the goods were predominantly iron and not steel was rejected.

Conclusion: The goods were held to fall under Heading 73.15(1) of the Customs Tariff Act, 1975.

Issue (ii): whether Notification No. 77/77-Cus. applied to the goods so as to entitle the appellants to concessional assessment.

Analysis: Once the goods were accepted as alloy steel products under Heading 73.15(1), the exemption notification claimed by the appellants became applicable on the facts proved before the Tribunal. The plea for the alternative complete exemption notification was not pursued and therefore did not survive for adjudication.

Conclusion: Notification No. 77/77-Cus. was held applicable and concessional reassessment was directed in favour of the appellants.

Final Conclusion: The disputed goods were directed to be reassessed under the claimed tariff entry with the benefit of the applicable exemption, resulting in relief to the appellants in both matters.

Ratio Decidendi: Where the proven composition of imported goods shows them to be iron-based alloy steel products, tariff classification must follow their substantive character and the corresponding exemption notification, if otherwise applicable on those facts, must be granted.

---