Shape requirement under Chapter 69 defeated excise classification of loose fire bricks grog as refractory bricks.

Fire bricks grog produced by breaking and grinding refractory bricks, and sold in loose condition, was held not to satisfy the shape requirement in Chapter Note 2 of Chapter 69 of the Central Excise Tariff Act, 1985. Because the processed material no longer retained the requisite shape of refractory bricks, it could not be classified under Heading 6901.00 and was not excisable. The reasoning also noted that the adjudication had gone beyond the scope of the show-cause notice, reinforcing the rejection of the Revenue's classification claim.

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Issues: Whether fire bricks grog, obtained by breaking and grinding refractory bricks into specified sizes and sold in loose condition, was classifiable as refractory bricks under Heading 6901.00 of the Central Excise Tariff Act, 1985 and therefore excisable.

Analysis: The goods in dispute had been described by the Department as broken refractory bricks falling under Heading 6901.00, while the assessee had treated them as non-excisable. The record showed that the material was sold in gunny bags in loose condition. The appellate authority had found that, after grinding and breaking, the material could not retain the requisite shape contemplated by Chapter Note 2 of Chapter 69 and therefore fell outside the scope of that Chapter. The Tribunal found no infirmity in that reasoning and also noted that the adjudication had travelled beyond the scope of the show-cause notice.

Conclusion: Fire bricks grog was not classifiable under Chapter 69 of the Central Excise Tariff Act, 1985 and was not excisable; the Revenue's appeal failed.

Ratio Decidendi: Where the disputed material, after breaking and grinding, no longer satisfies the statutory shape requirement under the relevant chapter note, it cannot be classified under that chapter for excise duty.

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