Usability-based tariff classification of used tyres: only tyres fit for direct use fell under one heading, balance under another.

Classification of imported old and used tyres depended on their actual condition and usability after 100% examination. Only the tyres found fit for use as such were classifiable under CSH 4012 2010/20, while tyres that could not be used as such had to be classified under CSH 4012 2090. Earlier rulings cited by the assessee were distinguished because they did not involve complete examination or identification of the usable quantity. The classification order was therefore modified on that basis, and the remand on valuation and related issues was maintained.

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Issues: Whether the imported consignment of old and used tyres was correctly classifiable entirely under CSH 4012 2010/20, or whether only the tyres found usable as such were classifiable under that heading and the balance under CSH 4012 2090.

Analysis: The goods were examined by experts and thereafter subjected to 100% examination by the lower authorities. On that examination, only a specific quantity of tyres was found fit for use as such, while the balance could not be so used. The earlier decisions relied upon by the assessee were distinguished on the ground that they did not involve such complete examination and identification of the exact quantity capable of use as such. The proper classification therefore depended on the actual condition and usability of the individual tyres, not on treating the entire consignment uniformly.

Conclusion: Only the tyres identified as usable as such were held classifiable under CSH 4012 2010/20, while the remaining tyres were held classifiable under CSH 4012 2090. The classification order was modified accordingly, while the remand on valuation and related issues was maintained.

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