ORDER
Shiben K. Dhar, Member (T)
1. This appeal is directed against order dated 8-1-1991 of Collector of Customs (Appeals). They imported a consignment which they declared as Electric Resistance Alloy (Ferrous Base) Strips. These were assessed to duty under CTH 7226.99. Subsequently however, the demand of duty was issued on the ground that the goods are classifiable under CTH 7220.90 as Flat-rolled products of stainless steel.
2. Arguing for the appellants ld. Consultant submits that department v has proceeded from the premise that carbon content was deliberately added to make it an alloy. In fact carbon was present in steel as an impurity and therefore, it cannot be an alloy.
3. Ld. DR reiterates the departmental arguments.
4. We have heard both sides. The Chapter Note 1(2) is for the sake of clarity reproduced below :-
“Stainless steel.
Alloy steels containing, by weight 1.2% or less of carbon and 10.5% or more of chromium, with or without other elements”.
There is no dispute in regard to percentage of carbon in the impugned goods. The impugned goods have 14.45% chromium and carbon contents is 0.32%. In other words both the conditions relating to stainless steel are satisfied. CTH 72.20 refers to products of stainless steel of a width of less than 600 mm. There is no dispute in regard to other conditions but dispute is only whether it is Flat-rolled product of stainless steel classifiable under 72.20 or Flat-rolled products of other alloy steel classifiable under 72.26. Since the conditions relating to stainless steel as stated in Chapter Note 1 are satisfied, we have to hold that the goods are only stainless steel products. Chapter Note 1 category lays down specific conditions and goods have to be classified in accordance with those notes only and, how these products are otherwise considered, is not material for the purpose of classification. Whether or not aluminium has been added to the impugned goods, is not determinative of the issue since Chapter [Note 1] refers in no uncertain terms to percentage of carbon and chromium contents with or without other elements.
Second argument about carbon being only an impurity again cannot be accepted as it is the carbon percentage that largely determines the quality of the steel.
5. In view of what we have mentioned herein before we do not find any infirmity in the conclusion drawn by Collector that Chapter Notes indicate correct classification only as 7220.90. Accordingly we reject the appeal and uphold the impugned order.