Tariff classification of pulse waste turned on the correct heading, and the departmental demand fell when that classification failed.

Waste derived from processed pulses was held not classifiable under heading 23025000, because that entry covers bran, sharps and other residues from the sifting, milling or other working of cereals or leguminous plants in the relevant sense. The goods were instead found to fit the assessee's declared classification under heading 0713 for dried leguminous vegetables shelled, whether or not skinned or split. As the departmental classification failed on merits, the consequential duty demand could not survive, and the impugned order was set aside in favour of the assessee.

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Issues: Whether the impugned goods, being waste derived from processed pulses, were correctly classifiable under heading 23025000 as claimed by the department or under heading 0713 as claimed by the assessee, and whether the impugned demand could survive if the departmental classification failed.

Analysis: The dispute turned on the proper classification of the goods cleared into the domestic tariff area after processing of pulses. Heading 2302 applies to bran, sharps and other residues derived from the sifting, milling or other working of cereals or leguminous plants, whereas heading 0713 covers dried leguminous vegetables shelled, whether or not skinned or split. On the facts found, the goods were waste arising from pulses and not from the working of cereals or leguminous plants in the manner contemplated by heading 2302. Once the departmental classification was found unsustainable, the consequential demand could not survive. The goods were also found to fit the assessee's declared classification under heading 0713.

Conclusion: The goods were not classifiable under heading 23025000 and were correctly classifiable under heading 0713. The impugned order and the duty demand were unsustainable, in favour of the assessee.

Final Conclusion: The appeal succeeded, the classification adopted by the department was rejected, and the assessee obtained consequential relief.

Ratio Decidendi: Where the departmental classification of goods fails on merits, the resulting demand cannot be sustained, and the goods must be classified according to the tariff entry that correctly answers their description.

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