Classification of used rollers as scrap rather than serviceable goods turned on physical condition and engineer's report.

Imported old and used rollers were held not to be serviceable rollers under Chapter 84 where physical verification and the Chartered Engineer's report showed them as used, defective and rejected, with rust, corrosion, scratches and a non-uniform surface. The report indicated they could not be used for their intended purpose, and the later clarification that they formed part of a rolling mill plant did not override that original finding. Earlier clearance of two consignments on verification also supported the importer's position. The precedent on goods usable as such was found inapplicable because the report did not establish usability. The impugned classification and related order were set aside, and the goods were directed to be cleared after mutilation under customs supervision.

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Issues: Whether the imported old and used rollers were classifiable as heavy melting scrap under Chapter 72 of the Customs Tariff Act, 1975 or as serviceable rollers under Chapter 84, and whether the goods were liable to the consequences flowing from the disputed classification.

Analysis: The imported goods were physically verified and the Chartered Engineer's report described them as used, defective and rejected rollers, noting rust, corrosion, scratches and non-uniform surface. The report stated that the rollers could not be used for their intended purpose and that the MS sheets produced with them would be rejected. The later clarification that the rollers were part of a rolling mill plant and could be serviceable did not outweigh the original finding that they were not fit for use as such. The earlier clearance of two consignments on verification also supported the importer's stand. The cited precedent on usable as such goods was found inapplicable because the present report did not state that the rollers were usable as such.

Conclusion: The goods were not to be treated as serviceable rollers under Chapter 84 and the impugned classification and related order were unsustainable. The appeal succeeded and the goods were directed to be cleared after mutilation under customs supervision.

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