Coal-based waste from sponge iron manufacture upheld as coal classification because technical evidence showed predominant coal content and fuel use.

Waste arising in sponge iron manufacture was classified on the basis of its composition and use: technical evidence showed the material was predominantly coal and it was used as fuel to generate heat, so it was treated as coal under Heading 2701.00 rather than as coal dust, slag or other waste from iron and steel manufacture under Heading 2619.00. The Commissioner (Appeals) therefore sustained the classification under Heading 2701.00, and the Revenue's challenge failed.

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Issues: Whether the waste emerging in the manufacture of sponge iron was correctly classifiable under Heading 2701.00 as coal, or under Heading 2619.00 as coal dust/coal shell/char dust or slag, dross, scalings and waste from the manufacture of iron and steel.

Analysis: The goods arose as waste during the rotary-kiln manufacture of sponge iron. The appellate authority relied on the chemical examiner's report showing that the goods were predominantly composed of coal and noted that their use was as fuel to generate heat. On that basis, the product was treated as akin to coal rather than as a distinct waste product attracting duty under Heading 2619.00.

Conclusion: The goods were correctly classified under Heading 2701.00, and the Revenue's challenge to that classification failed.

Final Conclusion: The classification adopted by the Commissioner (Appeals) was sustained and the Revenue appeals were rejected.

Ratio Decidendi: Where a waste product from the manufacture of sponge iron is shown by technical evidence to be predominantly coal and is used as fuel, it is classifiable as coal under the relevant tariff heading rather than as excisable waste from iron and steel manufacture.

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