Tariff classification of fused chemical mixtures favours chemical products over slag or residue headings.

Imported electro slag and pre-fused base slag were held to be deliberately prepared fused chemical mixtures of calcium fluoride, aluminium oxide and calcium oxide, not metallurgical slag left as a residue from iron or steel operations. Chapter 26, which covers slag, ash and residues from metallurgical processes, was found inapplicable because the goods were not residue-like material. Chapter 31 was also rejected because the goods were not basic slag used as fertiliser. On the materials produced, the goods were treated as chemical products and preparations classifiable under Heading 38.01/19(1), with classification under the slag headings denied in favour of Revenue.

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Issues: Whether the imported electro slag and pre-fused base slag were classifiable under Heading 26.02/04 of the Customs Tariff Act, 1975 as slag, ash or residues containing metals or metallic compounds, or under Heading 31.02/05(1), or under Heading 38.01/19(1) as chemical products and preparations.

Analysis: The imported goods were found to be a fused mixture of specified chemicals prepared by premixing and fusing calcium fluoride, aluminium oxide and calcium oxide, and not slag emerging as a residue or floating material from metallurgical processes. The record did not support the claim that the goods were refined metallurgical slag. Chapter 26 was held to cover slag, ash and residues left in metallurgical operations, while Chapter 31 was found inapplicable because the goods were not basic slag used as fertiliser. On the materials produced, the goods were treated as chemical products and preparations falling within Chapter 38.

Conclusion: The goods were not classifiable under Heading 26.02/04 or Heading 31.02/05(1) and were correctly classifiable under Heading 38.01/19(1) of the Customs Tariff Act, 1975 in favour of Revenue.

Ratio Decidendi: Where imported goods are a deliberately prepared fused chemical mixture and not a metallurgical residue or residue-like slag, classification must follow the tariff entry for chemical products rather than the entry for slag, ash or residues.

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