Calcined products classification: chapter note prevails over tariff heading, and later amendment applies prospectively only.

Chapter Note 2 to Chapter 25, as it stood before 20-3-1990, excluded roasted or calcined products and therefore prevailed over Heading 2505.00 for burnt lime and burnt dolomite. On that reading, the goods fell outside Chapter 25 and were classifiable under Heading 2804.90 for the relevant period. The later insertion of the words "Except where their context otherwise requires" was treated as a substantive amendment effective only from 20-3-1990, not as a retrospective clarification. Dictionary meanings and HSN Explanatory Notes could not override the clear chapter note. The lower classification was set aside and relief followed for the pre-amendment period.

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Issues: Whether burnt lime and burnt dolomite were classifiable under Heading 2505.00 of the Central Excise Tariff Act, 1985 or under Heading 2804.90, and whether the amendment to Chapter Note 2 to Chapter 25 effective from 20-3-1990 operated retrospectively for the period in dispute.

Analysis: Chapter Note 2 to Chapter 25, as it stood prior to 20-3-1990, expressly excluded products that had been roasted or calcined, and the note had overriding force over the tariff heading. The disputed goods were calcined products and therefore fell outside Chapter 25 for the relevant period. The later insertion of the words "Except where their context otherwise requires" was held to be an amendment effective only from 20-3-1990 and not a clarification of an earlier ambiguity. Dictionary meanings and HSN Explanatory Notes could not override the clear chapter note, particularly when the pre-amendment note and the HSN position were not on the same footing.

Conclusion: Burnt lime and burnt dolomite were not classifiable under Heading 2505.00 for the period prior to 20-3-1990, and the amendment to Chapter Note 2 did not apply retrospectively. The classification adopted by the lower authorities was set aside.

Final Conclusion: The appeals succeeded, with consequential relief flowing to the appellants on the pre-amendment classification dispute.

Ratio Decidendi: Where a chapter note clearly excludes calcined products, that note prevails over the tariff heading, and a later amendment expanding the scope operates prospectively unless the statute plainly indicates retrospective clarification.

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