Product classed under sub-heading 6807.10 (contains over 25% blast furnace slag); composition-based tariff entry favours assessee, 6803.00 rejected

SC held the product is classifiable under sub-heading 6807.10 because it contains more than 25% by weight of blast furnace slag, and the tariff heading is composition-based and specific. The Court found the adjudicating authority and Tribunal correctly applied the beneficial entry in favour of the assessee, rejecting revenue's contention that the goods fall under 6803.00. Decision: classification under 6807.10 confirmed and matter decided for the assessee.

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Issues: Whether Slagwool and Rockwool manufactured using more than 25% by weight of blast furnace slag were classifiable under sub-heading 6803.00 or under sub-heading 6807.10 of the Central Excise Tariff Act, 1985, and whether the departmental circular could displace that classification.

Analysis: The competing tariff entries were examined. Although sub-heading 6803.00 specifically mentioned Slagwool and Rockwool, sub-heading 6807.10 was a consciously introduced entry covering goods in which more than 25% by weight of red mud, press mud or blast furnace slag was used. Since the goods in question were manufactured with more than 25% by weight of blast furnace slag, the composition-based entry was treated as a specific classification for such goods. The departmental circular was held not to be binding on the assessee, quasi-judicial authorities, or the Court.

Conclusion: The goods were correctly classifiable under sub-heading 6807.10, and the appeal was liable to be dismissed.

Final Conclusion: The classification adopted in favour of the assessee was upheld, and the revenue challenge failed.

Ratio Decidendi: Where a tariff entry specifically covers goods by reference to their composition, that entry governs classification, and departmental circulars cannot override the statutory tariff scheme.

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