Tariff classification must rest on complete expert evidence, not an incomplete chemical report ignored against independent technical opinion.

Tariff classification of goods depending on chemical composition and process characteristics must be based on complete, reasoned expert material. An independent expert had examined the product's manufacture, raw materials and chemistry and supported the assessee's classification, while the department relied only on a cryptic extract of the Chief Chemist's report without producing the full report or addressing the request for clarification. That approach was held to vitiate the original and appellate orders. The classification findings were set aside and the matter remanded for fresh chemical examination, disclosure of the full report and redetermination of the correct classification after hearing the assessee.

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Issues: Whether the goods were correctly classified as micro cellular rubber sheets or as cellular plastic-polyethylene sheets, and whether the departmental classification was vitiated by reliance on an incomplete chemical report in preference to an independent expert opinion.

Analysis: The independent expert had examined the manufacturing process, raw materials and chemistry of the product and supported the assessee's classification claim. The departmental authorities, however, relied only on a cryptic extract of the Chief Chemist's report, without placing the full report on record or dealing with the request for clarification and proper examination. In tariff classification turning on chemical parameters, an expert opinion based on proper study of the product and process could not be ignored in favour of an incomplete departmental extract. The failure to consider the competing opinions and the request for meaningful chemical examination vitiated the original and appellate orders.

Conclusion: The assessee's challenge succeeded. The classification findings were set aside and the matter was remanded for fresh chemical examination and redetermination of the correct classification after furnishing the full report and hearing the assessee.

Ratio Decidendi: Where tariff classification depends on chemical composition and process characteristics, authorities must consider complete and reasoned expert material and cannot sustain a classification solely on an incomplete departmental report without proper examination of the competing expert evidence.

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