Tariff classification of iron and steel products turned on physical verification of whether they were flats or strips before final determination.

Tariff classification of iron and steel bars depended on whether the goods physically conformed to the description of flats or strips as flat rolled products. Because the decisive issue was the product's cross-section and other physical characteristics, the Tribunal held that classification could not be finalised without verification. The matter was remanded to the original authority for fresh determination, with a speaking order to be passed after physical examination of the goods and after giving the assessee an opportunity of hearing. The earlier appellate order was not sustained on merits and was set aside.

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Issues: Whether the goods described as bars of iron and steel with specified thickness and width were classifiable under the tariff headings claimed by the assessee or required fresh verification for determining whether they answered the description of flats or strips under the Central Excise Tariff.

Analysis: The Tribunal followed its earlier view that the decisive question was whether the products had a rectangular cross-section conforming to the definition of flat rolled products. Since the correctness of the classification depended on physical verification of the goods, the matter required reconsideration by the original authority. The earlier appellate order was, therefore, not sustained on merits and the case was sent back for a fresh speaking order after verification and after granting an opportunity of hearing.

Conclusion: The classification dispute was remanded for fresh determination on physical verification, and the impugned order was set aside.

Ratio Decidendi: Where tariff classification turns on whether the goods physically conform to the definition of flat rolled products, the matter must be decided on verification of the product characteristics before final classification is made.

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