Zinc ash classification under the Central Excise Tariff: exemption failed, but Item 68 assessment applied for pre-1981 imports.

Imported zinc ash was examined for countervailing duty classification under the Central Excise Tariff, with the exemption claim under Notification No. 104/73-C.E. rejected because the evidence did not show that the material arose exclusively from smelting operations. The alternative classification under Item 68 was accepted for imports made before 1-3-1981, supported by departmental trade advice indicating that zinc ash was assessable under Item 68 before amendment of Item 26B. The view that the notification benefit was limited to indigenous goods was held unsustainable, and assessment under Item 68 was directed.

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Issues: Whether imported zinc ash was liable to countervailing duty under Item No. 26B of the Central Excise Tariff or was classifiable under Item No. 68, and whether the benefit of Notification No. 104/73-C.E. dated 21-4-1973 was available.

Analysis: The claim for exemption under Notification No. 104/73-C.E. was not established on the evidence, as the material showed only that zinc ash could arise from smelting or melting and not exclusively from smelting operations. The alternative contention was accepted because the goods were imported before 1-3-1981 and the departmental trade advice supported assessment of zinc ash under Item No. 68 prior to the amendment of Item No. 26B. The lower authorities' view that the notification benefit was confined to indigenous goods was not sustainable.

Conclusion: The goods were directed to be assessed under Item No. 68 of the Central Excise Tariff for countervailing duty, and the assessee succeeded.

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