Customs classification does not bind excise classification; fresh consideration required on the goods' true nature and tariff entry.

Customs classification of imported goods is not conclusive for Central Excise purposes; excise classification must be determined independently from the actual nature of the goods and the relevant tariff entry. Where the appellate authority relies only on the import classification and does not examine the correct excise classification on merits, the matter requires reconsideration. The impugned order was set aside and the dispute remanded for fresh decision on excise classification without being influenced by the Customs assessment.

---

---

Issues: Whether the Central Excise classification of imported Solubor was bound by its Customs classification, and whether the matter required reconsideration on the actual nature of the goods.

Analysis: The Customs classification of imported goods does not by itself bind the Central Excise authorities. Excise classification must be determined independently on the basis of the actual nature of the goods and the applicable tariff entry. The appellate authority had proceeded only on the footing that the goods were classified under Chapter Heading 3105 at import and had not examined the correct excise classification on merits.

Conclusion: The Customs classification was held not to be conclusive for Central Excise purposes, and the matter was remanded to the Commissioner (Appeals) for fresh decision on classification without being influenced by the Customs assessment.

Final Conclusion: The Revenue succeeded to the extent that the impugned order was set aside and the dispute was sent back for fresh adjudication on excise classification.

Ratio Decidendi: Central Excise classification must be determined independently on the basis of the goods' actual nature and tariff entry, and a Customs classification is not automatically binding for that purpose.

---