Mill-scale classification under central excise turned on whether it was waste and scrap, with Board circular guidance relevant to the decision.

Mill-scale generated during rolling of iron billets was discussed for central excise classification as waste and scrap under Tariff Item 25(3)(iii), with the Tribunal noting the argument that it was only rust or residue and that Board circulars bind field officers. The issue whether mill-scale arose as a manufactured product required detailed examination by the departmental authorities, taking account of the Board's instructions. The impugned order was set aside and the matter was remanded to the Jurisdictional Assistant Commissioner for a fresh decision.

---

---

Issues: Whether mill-scale was classifiable as waste and scrap under Tariff Item 25(3)(iii), and whether the Board's Circular No. 11/I & S Products/63 governed the classification dispute.

Analysis: The dispute concerned the correct central excise classification of mill-scale generated during rolling of iron billets. The Tribunal noted the appellant's case that mill-scale was only rust or residue and that the Board's circulars were binding on field officers. It also recorded that the question whether mill-scale was the result of manufacture required detailed examination by the departmental authorities, with due regard to the Board's instructions.

Outcome: The impugned order was set aside and the matter was remanded to the Jurisdictional Assistant Commissioner for passing a fresh order.

---