Tariff classification under HSN realignment determines deemed credit eligibility for semi-finished iron and steel products, with partial relief.

Where the tariff was realigned with HSN from 1-3-1988, semi-finished iron and steel products were classifiable under Heading 7207.90, and deemed credit could not be denied for the post-1-3-1988 period because the 20-5-1988 credit order covered that heading. For the earlier period, the applicable deemed credit order covered only Heading 72.06, so the goods did not qualify under that entry. Credit eligibility was therefore accepted for the later period and rejected for the earlier period, resulting in only partial relief.

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Issues: (i) Whether the goods in dispute were semi-finished iron and steel products classifiable under Heading 7207.90 from 1-3-1988. (ii) Whether deemed credit was admissible on those goods under the Government's deemed credit order dated 20-5-1988, and whether such credit was unavailable for the earlier period when only Heading 72.06 was covered.

Issue (i): Whether the goods in dispute were semi-finished iron and steel products classifiable under Heading 7207.90 from 1-3-1988.

Analysis: The record did not contain a clear factual finding in the earlier orders on whether the goods were semi-finished or finished. The Tribunal relied on the revenue's own appeal grounds, which treated the goods as semi-finished, and on the absence of any serious dispute from the assessee on that characterization. It also noted that, after the tariff was realigned with the HSN from 1-3-1988, semi-finished angles, shapes and sections were specifically covered by sub-heading 7207.90.

Conclusion: The goods were held to be semi-finished and classifiable under Heading 7207.90 with effect from 1-3-1988.

Issue (ii): Whether deemed credit was admissible on those goods under the Government's deemed credit order dated 20-5-1988, and whether such credit was unavailable for the earlier period when only Heading 72.06 was covered.

Analysis: The deemed credit order dated 20-5-1988 expressly extended credit to goods falling under Heading 7207.90, among other headings. Since the goods were found to fall under that heading and there was no dispute that they were non-duty paid, the credit was admissible for the later period. For the earlier period, however, the applicable order covered only Heading 72.06, and the goods did not fall within that entry.

Conclusion: Deemed credit was allowed for the appeals relating to the post-1-3-1988 period, but not for the appeal concerning the earlier period.

Final Conclusion: The common order sustained credit eligibility for the semi-finished goods for the period covered by the 20-5-1988 order and rejected the claim for the earlier period, resulting in partial success for the assessee.

Ratio Decidendi: Where the tariff, as realigned with HSN, specifically covers semi-finished iron and steel products, and the governing deemed credit order extends credit to that heading, credit cannot be denied merely because the goods were earlier treated differently in the adjudicatory record.

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