Classification of old iron and steel goods upheld on examination report; scrap and reusable portions treated separately.

Imported old and used iron and steel goods were classified on the basis of the physical examination report, which showed dismantled material, cut pieces, end cuttings, girders, pipes, plates and rails, with only a portion reusable and the balance re-rollable scrap. In the absence of contrary evidence, that examination record was accepted as determinative, so the larger part remained melting scrap under Chapter 72 and the reusable portion was correctly treated under Chapter 73. The lower authorities' classification was upheld and the Revenue's attempt to reclassify the entire consignment failed.

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Issues: Whether the imported old and used iron and steel goods were correctly classified partly under Chapter 72 as melting scrap and partly under Chapter 73 as reusable goods, and whether the Revenue had shown any basis to reopen the examination report and seek a higher duty classification for the entire consignment.

Analysis: The examination report recorded that the consignment consisted of dismantled iron and steel material, including cut pieces, end cuttings, girders, pipes, plates and rails, and that only a portion was reusable while the balance was re-rollable scrap. The respondents accepted the examination report and paid duty at the appropriate rate on the reusable portion. In the absence of any contrary evidence, the recorded physical examination could not be displaced. On the material available, the goods were old and used scrap items and the larger part was melting scrap classifiable under Chapter 72, with the balance correctly treated as reusable goods under Chapter 73.

Conclusion: The classification adopted by the lower authorities was upheld and the Revenue's contention for reclassification of the entire consignment failed.

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