I am directed to say that doubts have been expressed regarding correct classification of Zinc Chrome whether under heading No. 28.41 or 32.06 of the Central Excise Tariff Act, 1985. Zinc Chrome is available in 3 varieties, viz. type 1, type 2 and type 3. Whereas type 1 has got pigmentary properties, type 2 and type 3 have got anti-corrosive properties.

2.     The Board has carefully examined the matter. It is observed that in terms of Note 2 to Chapter 32, heading No. 32.06 apply also to preparation based on colouring matter (including colouring pigments of heading No. 26.05 or Ch.28, metal flakes and metal powders), of a kind used for colouring any material or used as ingredients in the manufacture of colouring preparations. This note hints that the colouring pigments are also classifiable under Chapter 28 but any preparation based on the colouring pigments of Chapter 28 used for colouring any material would be classifiable under 32.06. This note does not by itself conclude that the colouring pigments should fall under 32.06. As per HSN note (A) (b) below heading No. 32.06 (page 458) the heading excludes separate chemically defined inorganic colouring matters. Lead chromate (Chapter 28) has been given as an example of such inorganic colouring matter. The general Notes on page 449 emphasizes that product consisting of chemically defined elements or compounds are excluded from Chapter 32 and in general fall in Chapter 28 or 29. Zinc Chromate being a chemically defined inorganic compound should therefore fall under Chapter 28. HSN Note (A) (2) below heading No. 32.06 (page 458) further says that the colouring matter of 32.06 includes pigments based on chromium compounds, which included yellow and greens consisting of mixture of a chromium compound with other substances. This means that when Zinc Chromate is mixed with another inorganic product or any other substance, the mixture, if it is a colouring matter, may fall under 32.06, the pigment and the preparations should have the colouring properties. Any pigments whether colouring or not, by virtue of being a pigment would not fall under 3206.10. Similarly, 3206.90 will only cover the preparations based on colouring matters or colouring pigments.

3.     Coming to Chapter 28, a parallel may be drawn to 28.41 of HSN and that of CET. Under HSN Chromate of Zinc are specifically mentioned against 2841.20. There being no parallel sub-heading under CET Chromate of Zinc should therefore fall under 2841.90 as 'other category'. Under HSN note (2) (a) below heading No. 28.41 (page 299), Zinc Chromate has been mentioned under the main groups of such compounds covered under 28.41. The treatment of Zinc salts with potassium dichromate gives hydrated or basic Zinc Chromate. It is a powder insoluble in water. Pigments, which alone or in mixture, constitute Zinc Yellow. Mixed Chromate (Zn Cr 04) being a chemically defined inorganic type 1, type 2 or type 3. On the other hand, Zinc Yellow which is a complex Zinc Potassium Chromate being a 'Pigment prepared with Chromates' would fall, under 32.06 in terms of the exclusion clause (b) below heading No. 28.41 (page 300). Similarly Zinc Green, which is a mixture of Zinc Chrome and Prussian blue, will fall under 32.06.

4.     In view of the above the Board is of the view that Zinc Chromate is appropriately classifiable under 28.41. For attracting the classification under 32.06, either the Zinc Chrome should be in the form of Zinc Yellow or Zinc Green.

5.     All pending disputes/ assessments on the issue may be settled in the light of the guidelines.