Product classification depends on scientific character after processing, and synthetic rutile was held classifiable under Chapter 28.

Classification of upgraded beneficiated ilmenite turned on its scientific character after processing. Government laboratory and agency reports showed that leaching altered the raw ilmenite's chemical composition and crystallographic structure, producing synthetic rutile with tetragonal structure and high TiO2 content. Applying the HSN Notes to Chapters 26 and 28, the tribunal held that concentrates whose composition or structure has been altered by treatment are excluded from Chapter 26, while titanium oxides fall within Chapter 28. The export description could not override the product's scientific nature, and the Revenue failed to rebut the assessee's evidence. The product was classifiable under CTH 2823, not CTH 2614.

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Issues: Whether the exported product described as "Upgraded Beneficiated Ilmenite (Synthetic Rutile) TiO2 95% Min. Moisture 0.5% Max." was classifiable under CTH 2614 as claimed by Revenue or under CTH 2823 as claimed by the assessee.

Analysis: The classification turned on the nature of the product after processing and on the HSN Explanatory Notes to Chapters 26 and 28. The record contained scientific reports from government agencies showing that raw ilmenite underwent a change in chemical composition and crystallographic structure during leaching, resulting in synthetic rutile with tetragonal structure and high TiO2 content. The Notes to Chapter 26 exclude concentrates obtained by treatments, other than calcining or roasting, which alter the chemical composition or crystallographic structure of the basic ore, while Chapter 28 covers titanium oxides and excludes natural rutile as an ore. The Revenue did not produce comparable scientific evidence to displace the assessee's material, and the description in the export documents could not override the scientific character of the final product.

Conclusion: The product was correctly classifiable under CTH 2823 and not under CTH 2614. The Revenue's appeal failed and the assessee's appeals succeeded.

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