Calcined lime products fall outside Heading 25.05 and are not liable to central excise duty under the tariff note.

Lime, quick lime and hydrated lime obtained by calcination of limestone fall outside Heading 25.05 where Chapter Note 2 excludes products that have been roasted or calcined. The note was interpreted as covering only mechanical or physical processes that do not alter the product's structure; because calcination changes the material, the goods were treated as the heading and not liable to central excise duty under it. The cited settled view in earlier Tribunal and Supreme Court decisions was followed, and the departmental challenge failed, leaving the order in favour of the assessee undisturbed.

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Issues: Whether lime, quick lime and hydrated lime obtained by calcination of limestone are excluded from Chapter 25 by Chapter Note 2 and therefore not liable to central excise duty.

Analysis: The majority held that the disputed goods are obtained by heating or roasting limestone, and that Chapter Note 2 to Chapter 25 excludes products that have been roasted or calcined from Heading 25.05. The note was read as permitting only mechanical or physical processes that do not change the structure of the product. Applying that interpretation, the goods were treated as outside the scope of Heading 25.05 and not excisable. The majority also relied on earlier Tribunal and Supreme Court decisions on the same goods and followed the settled view that the products were not dutiable.

Conclusion: The goods are not classifiable under Heading 25.05 by reason of Chapter Note 2 and are not exigible to central excise duty.

Final Conclusion: The departmental appeal fails and the order in favour of the assessee is sustained.

Ratio Decidendi: Where the tariff note expressly excludes products that have been roasted or calcined, lime products obtained by calcination of limestone do not fall within the specified mineral heading and are not liable to duty under that heading.

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