Tariff classification of steel balls: specific heading prevails over end use, and unsupported departmental evidence cannot sustain demand.

Polished steel balls falling within the prescribed dimensional tolerance were classifiable under CTH 8482.9900 because tariff classification had to follow the heading terms and section and chapter notes, with the more specific description prevailing over a general one. The goods could not be placed under CTH 8714.9990 as bicycle parts, since classification could not rest on end use alone and the record showed other industrial applications. The Department's reliance on a Chartered Engineer's certificate was weakened because it was not based on technical testing, and denial of cross-examination offended natural justice. The demand and penalties were therefore not sustainable.

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Issues: Whether the imported steel balls were classifiable under CTH 8482.9900 or under CTH 8714.9990, and whether the demand and penalties could be sustained on the basis of end use and the material relied upon by the Department.

Analysis: The applicable tariff framework required classification to be determined first by the terms of the headings and the relevant section and chapter notes, and, where competing headings were possible, the more specific description had to prevail over a general one. The material showed that polished steel balls falling within the prescribed dimensional tolerance were specifically covered by Chapter 84, while other steel balls were excluded to Chapter 73, leaving no basis to place the goods in Chapter 87 as bicycle parts. The decision also noted that classification cannot be made on end use alone, particularly when the goods were shown to have other industrial applications. The Department's reliance on the Chartered Engineer's certificate was found to be weakened because it did not rest on technical testing, and denial of cross-examination was treated as contrary to natural justice.

Conclusion: The imported goods were correctly classifiable under CTH 8482.9900 and not under CTH 8714.9990. The demand and the penalties could not be sustained.

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