Tariff classification of aluminium alloy powder turns on distinct commercial identity and manufacture, not crude aluminium exemption.

Aluminium nickel alloy powder obtained by powdering aluminium alloy ingots was treated as a distinct product from aluminium in crude form. The text distinguishes ingots from powder on the basis of separate commercial identity, different physical properties, and specific industrial use, and notes that tariff entries themselves treated aluminium ingots and aluminium powder as different goods. On that basis, the powder was not covered by the exemption for aluminium in crude form under Notification No. 43/75 and was classifiable under Tariff Item 68. The conversion of ingots into powder was also regarded, on the facts stated, as a manufacturing process.

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Issues: Whether aluminium nickel alloy powder was classifiable as aluminium in crude form under Tariff Item 27(a)(i) and entitled to exemption under Notification No. 43/75, or was correctly classifiable under Tariff Item 68; and whether conversion of aluminium ingots into powder amounted to manufacture.

Analysis: The goods were produced by powdering aluminium nickel alloy ingots and were specially used by particular industries. The expression "aluminium in any crude form" was held to cover aluminium ingots, but not goods obtained at a further stage by powdering ingots. The distinction between ingots and powder was also supported by their separate commercial identity, different physical properties, specific end-use, and the fact that tariff entries themselves treated aluminium ingots and aluminium powder as different products. The process of converting ingots into powder was therefore treated as a manufacturing process on the facts of the case.

Conclusion: The aluminium nickel alloy powder was not aluminium in crude form and was not covered by the exemption claimed. It was upheld as classifiable under Tariff Item 68, and the revision application failed.

Final Conclusion: The classification adopted by the Appellate Collector was sustained, and the challenge to the duty treatment of the product was rejected.

Ratio Decidendi: A product obtained by powdering aluminium ingots, which acquires a distinct commercial identity and specific industrial use, is not aluminium in crude form for tariff purposes and may be treated as a manufactured commodity.

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