Zinc ash classification under Tariff Item 68 accepted, with duty recomputation and refund directed on revised treatment.

Zinc ash imported before 1981 was treated as classifiable under Tariff Item 68 rather than Tariff Item 26B, following the earlier Tribunal ruling accepted by the parties. On that basis, duty liability was to be recomputed under Item 68, and any exemption notification applicable to the goods would operate only if its conditions were satisfied. The classification under Item 68 was accepted in favour of the importer, the contrary classification was rejected, and refund consequential to the revised classification was directed to be granted.

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Issues: Whether zinc ash imported prior to 1981 was correctly classifiable under Tariff Item 68 of the Central Excise Tariff, and whether the appellant was entitled to refund and consequential exemption benefits.

Analysis: The parties accepted that the earlier Tribunal decision governing zinc ash imports prior to 1981 applied to the present dispute. On that basis, zinc ash was required to be classified under Tariff Item 68 and not under Tariff Item 26B. Once the classification under Tariff Item 68 was accepted, the duty liability had to be recomputed accordingly, and any exemption notification applicable to the goods was to be extended subject to fulfilment of its conditions.

Conclusion: The classification under Tariff Item 68 was accepted in favour of the appellant, the contrary classification was disapproved, and refund admissible to the appellant was directed to be granted.

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