Tariff classification follows chemical composition and expert testing, while provisional assessment can be finalised by show cause notice.

Tariff classification of nitrided low carbon ferro manganese was determined by chemical composition and expert test results, not merely by the importer's description. The Tribunal accepted the test report and chemical examiner's opinion that the material was other than ferro manganese and classified it under Chapter heading 81.11. In a separate jurisdiction point, it held that where goods are cleared under provisional assessment, the proper officer may finalise assessment by show cause notice, so the Deputy Commissioner had competence to issue the notice. The department's classification and jurisdictional stance were therefore upheld.

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Issues: (i) Whether the imported goods, described as nitrided low carbon ferro manganese, were classifiable under Chapter sub-heading 7202.19 or under Chapter heading 81.11; (ii) Whether the Deputy Commissioner lacked jurisdiction to issue the show cause notice in a case of provisional assessment and alleged misdeclaration.

Issue (i): Whether the imported goods, described as nitrided low carbon ferro manganese, were classifiable under Chapter sub-heading 7202.19 or under Chapter heading 81.11.

Analysis: The goods were described as nitrided low carbon ferro manganese, and the test report showed 95.10% manganese and 0.06% carbon. The Tribunal treated the nitrided component as relevant to the composition and held that, when nitrogen and oxygen generated in testing were taken into account, the material left no scope for iron content of 4% or more. The chemical examiner had also given a categorical opinion that the sample was other than ferro manganese. On the combined effect of the test result, the expert opinion, and the tariff notes relied upon by the parties, the Tribunal found the appellant's classification claim unsustainable.

Conclusion: The goods were held classifiable under Chapter heading 81.11, against the assessee.

Issue (ii): Whether the Deputy Commissioner lacked jurisdiction to issue the show cause notice in a case of provisional assessment and alleged misdeclaration.

Analysis: The goods had been cleared provisionally on execution of a provisional duty bond, and the assessment was yet to be finalised by the proper officer. The Tribunal held that provisional assessment could be finalised by the Assistant Commissioner or Deputy Commissioner through a show cause notice. On that basis, it found no absence of competence or violation of law in the issuance of the notice.

Conclusion: The show cause notice was held to be within jurisdiction, against the assessee.

Final Conclusion: The Tribunal upheld the classification adopted by the department and negatived the jurisdictional challenge, resulting in rejection of the appeal.

Ratio Decidendi: For goods cleared provisionally, the proper officer may finalise assessment by show cause notice, and tariff classification must follow the material composition and expert test result rather than the importer's description where the evidence shows the goods to be of a different character.

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