Tariff classification of imported scrap turns on total evidence, not a chemical report's unsupported view.

A chemical examiner's report may establish the physical nature of imported goods, but it cannot by itself ermine tariff classification when the issue must be decided on the totality of the evidence and the governing import permission. Here, the consignment was declared as plastic scrap for processing in a 100% EOU in an SEZ, and the exporter's certificate and Letter of Permission supported import of plastic-based waste for conversion and re-export. On that basis, the goods were treated as classifiable under Chapter Heading 3915.00, not 5702.32, and the proposed duty demand, confiscation and penalties could not be sustained.

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Issues: Whether the imported goods were correctly classifiable under Chapter Heading 3915.00 of the Customs Tariff Act, 1975 or under Chapter Heading 5702.32, and whether the consequent demand of duty, confiscation and penalties could be sustained.

Analysis: The imported consignment was declared as plastic scrap for processing in a 100% EOU situated in an SEZ. The chemical examination report stated that the goods were carpet material and also ventured to opine on the tariff heading. Such a report could be relied upon for its chemical findings, but the officer giving the report was not empowered to decide the tariff classification. The exporter's certificate described the material as post-processed industrial waste, and the Letter of Permission permitted import of plastic waste and related forms for conversion and re-export. On the record, the basic material was found to be plastic-based waste and scrap, which supported the declared classification.

Conclusion: The goods were held to be classifiable under Chapter Heading 3915.00 and not under Chapter Heading 5702.32. The duty demand, confiscation and penalties were unsustainable.

Final Conclusion: The impugned order was set aside and both appeals succeeded on merits.

Ratio Decidendi: A chemical examiner's report may establish the nature of the goods, but it cannot itself determine tariff classification when the classification issue has to be decided on the totality of the material and the governing import permission.

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