2026-VIL-1489-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs - Classification of goods declared as 'Lead Concentrate'- Lead Concentrate Vs Lead Scrap/Waste - Appellant imported lead-bearing powder material declaring the same as Lead Concentrate under CTH 2607. Department contended that the imported goods should have been classified as Lead Waste and Scrap under CTH 7802 based on ground that goods originated from used lead acid batteries and lacked silver and gold traces - Adjudicating Authority confirmed demand for differential customs duty, interest and penalties including confiscation and redemption fine under Section 111 of Customs Act - Whether imported goods are classifiable as Lead Concentrate under CTH 2607 00 00 or as Lead Waste and Scrap under CTH 7802 00 90 - HELD - Tariff classification is determined by the nature and characteristics of goods as imported, not by the identity of importer, the furnaces he operates, or metallurgical processes he is licensed to perform. Multiple test reports from Government laboratories show that lead in samples was predominantly in form of lead oxide and lead sulphate compounds with metallic lead present only in very small quantities in fine particle form - The composition ranging from 60.2 to 68.66 percent lead is consistent with specification of lead concentrate. One test report from Customs Laboratory JNCH Nhava Sheva explicitly described samples as having composition of lead concentrate - Lead oxide is classifiable under Chapter heading 2824 and sulphates of metals are classifiable under heading 2833. Only lead in primary metallic form falls under Chapter 78. Since lead in samples was not in primary metallic form but in oxide and sulphate form comprising approximately 87 to 92 percent of material, classification under Chapter 78 is not sustainable - Conflicting laboratory reports must be analyzed on basis of which report provides detailed scientific analysis and composition data - Kandla Laboratory reports and JNCH reports described goods as having characteristics of lead concentrate. While CRCL opined samples were washed and dried electrode paste, it did not actually report them as lead scrap. Absence of silver cannot be deciding factor and absence of gold or silver cannot preclude classification as concentrate - Pre-Shipment Inspection Certificates themselves describe goods as lead concentrate in description column despite heading referring to metallic scrap. These certificates were issued to certify absence of hazardous materials, not to determine tariff classification. Load Port Customs export documents represent declarations by foreign exporters in foreign nomenclature for foreign regulatory purposes and are not binding on Indian Customs authorities – The burden of proof to establish classification rests on Revenue when customs authorities seek to classify goods differently from assessee's declared classification. In self-assessment regime applicable to imports, classification submitted by assessee must be accepted unless revenue discharges burden of proof through conclusive scientific evidence - When all scientific reports are analyzed, majority and more detailed reports favor classification as lead concentrate, classification under CTH 7802 has absolutely no merit. Confiscation is not sustainable as goods have been cleared for home consumption and do not remain imported goods as defined under Section 2(25) of Customs Act - The impugned order classifying goods under Chapter 78 is set aside. The goods are classifiable as Lead Concentrate under CTH 2607 00 00 - The appeals are allowed
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