Cement classification under tariff: product lacking gypsum fell outside grey portland cement but within the wider residual entry.

Cement classification under the tariff turned on whether the product answered the specific description of grey portland cement or the wider residual category of other varieties. Because the product admittedly contained no gypsum, it could not be treated as grey portland cement. However, its function as a binder and its commercial description as regulated clinker binder kept it within the broader tariff entry for cement of another variety. The consequence was that classification under the specific entry failed, while the wider cement entry applied, leaving duty liability and penalty to be redetermined on remand.

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Issues: Whether the product manufactured by the respondents was classifiable as grey portland cement under Tariff Item 23(1) or as cement of another variety under Tariff Item 23(2), and the consequential duty and penalty liability.

Analysis: The tariff covered cement of all varieties. Grey portland cement was treated as a distinct entry, while the residuary part covered all other varieties. The product in question admittedly did not use gypsum and therefore could not be treated as grey portland cement. At the same time, the material showed that it functioned as a binder and was marketed as regulated clinker binder. The absence of gypsum did not take it out of the wider category of cement, but only out of the specific description of grey portland cement.

Conclusion: The product was not classifiable under Tariff Item 23(1), but fell within Tariff Item 23(2) as cement of another variety. The order of the Collector (Appeals) was set aside and the matter was remanded for redetermination of duty liability and reconsideration of penalty.

Final Conclusion: The department succeeded on classification in part, but the exact duty and penalty consequences were left for fresh adjudication on remand.

Ratio Decidendi: A product that is not grey portland cement because it lacks gypsum may still fall within the wider tariff entry for cement of other varieties if it functions as a binder and answers the broader description of cement.

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