Used conveyor belts and waste classification: mere wear does not convert equipment into rubber scrap for duty purposes.

Rule 57S(2)(C) applies only when capital goods are sold as waste and scrap, so duty is leviable on the waste and scrap value. Used conveyor belts retained their identity as material handling equipment because there was no evidence that they had been cut, slit, dismantled, or otherwise converted into rubber waste and scrap; mere repeated use or wear was insufficient. Classification under Heading 40.04 was therefore unavailable, since that heading covers only genuine rubber waste and scrap that is no longer usable as such. On these facts, the duty demand on the cleared used conveyor belts was unsustainable.

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Issues: Whether old and used conveyor belts cleared after repeated use were liable to duty as waste and scrap under Rule 57S(2)(C), and whether their classification could be shifted from conveyor belts to Heading 40.04.

Analysis: Rule 57S(2)(C) applies only where capital goods are sold as waste and scrap and the duty leviable is the duty on such waste and scrap. The used conveyor belts were originally classifiable as material handling equipment and there was no evidence that they had been cut, slit, dismantled, or otherwise converted into rubber waste and scrap. Mere repeated use or wear did not alter their essential identity as conveyor belts. Goods can fall under Heading 40.04 only when they are in fact waste and scrap of rubber and are not usable as such, which was not shown on the facts.

Conclusion: The provision was not attracted and the demand of duty on the cleared used conveyor belts was unsustainable.

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