Tariff classification of Artemia cysts depends on their essential nature and factual verification before final assessment.

Imported Artemia cysts were required to be classified by their true description, essential nature and character, rather than by a pedantic approach to tariff classification. If the goods contained embryos or living organisms, later incubation would not alter that identity and they could fall within prawn feed. The classification could not be finally determined on the existing record because the decisive factual question-whether the cysts in fact contained an embryo or live organism-had not been properly examined, and the assessee had not been given a proper opportunity to meet the revenue's evidence. The orders were liable to be set aside and the matter reheard afresh.

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Issues: Whether the imported Artemia cysts were classifiable as prawn feed under the customs tariff, and whether the matter required a factual enquiry into the existence of embryos or living organisms within the imported goods before final classification.

Analysis: The dispute turned on the true nature of the imported product and its intended use. Classification under the tariff had to be made with reference to the description of the goods and their essential nature and character, not by adopting an unduly pedantic approach. If the imported cysts contained embryos or living organisms, subsequent incubation would not change their essential identity, and they could fall within the description of prawn feed. The determination, however, depended on whether the goods actually contained an embryo or live organism, a factual matter that had not been properly examined. The adjudication was made without making available the provisional assessment test report or affording a proper opportunity to meet the revenue's evidence.

Conclusion: The classification issue could not be finally decided on the existing record, and a factual enquiry was necessary. The orders were liable to be set aside and the matter had to be reheard and decided afresh.

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