Cement classification by chemical test requires reliable evidence; later reports cannot retrospectively prove earlier duty liability.

Classification of goods as Ordinary Portland Cement depends on whether the product answers the tariff description and commercial understanding, supported by reliable chemical evidence. Test reports here indicated non-conformity with key ISI requirements, including loss on ignition and the lime-silica ratio, and differing descriptions in documents did not by itself establish cement classification. A later test report could apply only prospectively and could not retrospectively prove that goods manufactured in an earlier period were cement. Allegations of suppression or mala fides cannot be sustained unless they are made in the show cause notice and supported by evidence.

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Issues: Whether the goods manufactured and described as "Plaster of lime" were in fact Ordinary Portland Cement classifiable under Item 23 of the erstwhile Central Excise Tariff and liable to duty, and whether the demand and penalty could be sustained on the basis of the chemical tests and alleged suppression.

Analysis: The relevant classification depended on whether the goods answered the description of cement in the tariff and in commercial understanding. The test reports from the Chief Chemist and the National Test House showed that the sample did not conform to important ISI requirements for Ordinary Portland Cement, including loss on ignition and the lime-silica ratio. The record also indicated that the goods were differently described in various documents, which did not by itself establish that they were Ordinary Portland Cement. The Tribunal further held that the result of the later test could only have prospective application and could not, by itself, justify a presumption that the goods manufactured during the earlier period were cement. The finding of suppression and mala fides could not be sustained where no such allegation was made in the show cause notice.

Conclusion: The goods were not proved to be Ordinary Portland Cement, the duty demand failed, and the penalty was unsustainable.

Final Conclusion: The order confirming duty and penalty was set aside and the appeal succeeded.

Ratio Decidendi: Where the department relies on chemical tests to classify goods as cement, the goods must be shown to conform to the tariff description on reliable evidence, and a later test report cannot retrospectively establish liability for an earlier period in the absence of proof of suppression or other lawful basis.

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