Customs reclassification requires technical verification and reasons; a bare rejection of the importer's declared scrap description was unsustainable.

When customs authorities seek to alter an importer's declared classification of stainless steel melting scrap, they must record and communicate the basis for the proposed reclassification and place material on record to show the declaration is incorrect. A bare rejection of the importer's description, without technical verification or expert examination, is insufficient to sustain reassessment. Where the declaration was supported by a pre-shipment inspection certificate describing the goods as scrap and no contrary expert material was shown, the attempted reclassification could not be upheld, and the importer's relief was granted.

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Issues: Whether the customs authorities could reject the importer's declared classification and description of imported stainless steel melting scrap without technical examination and without recording and communicating reasons for the proposed reclassification.

Analysis: The declaration made by the importer was supported by a pre-shipment inspection certificate describing the goods as scrap. The record did not show any examination by an expert body to displace that declaration. In a case of reclassification, the burden lay on the Revenue to set out the reasons for the proposed change and to place material on record so that the importer could meet the case. A bare rejection of the importer's description, without technical verification, was not sufficient to sustain the adjudication.

Conclusion: The rejection of the declared classification was unsustainable and the relief was in favour of the appellant.

Final Conclusion: The demand to alter the declared description and classification failed for want of adequate proof and technical verification, so the appeal succeeded.

Ratio Decidendi: When the Revenue seeks to alter an importer's declared classification, it must record and communicate the basis for the proposed change and discharge the burden of proving that the declared description is incorrect, especially where no expert examination is undertaken.

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