Tariff classification of cold-rolled steel shapes turned on preparation for structural use, favouring Heading 7216 over Heading 7308.

Cold-rolled shapes and sections of non-alloy steel that were not further worked and were not prepared for use in structures were held classifiable under Heading 7216, not Heading 7308. The determining factor was the absence of preparation for structural use, since Heading 7308 covers articles prepared for use in structures. The Board circular was read as applying only to cold roll-formed sections prepared for structurals and therefore did not support the Revenue's classification view. An earlier Tribunal ruling on Heading 7216 was treated as governing, and the circular was noted as lacking binding force on quasi-judicial authorities.

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Issues: Whether cold-rolled shapes and sections of non-alloy steel, not further worked and not prepared for use in structures, were classifiable under Heading 7216 or under Heading 7308.

Analysis: The impugned goods emerged from the process of cold rolling and were not further worked. Heading 7216 covers shapes and sections of iron or non-alloy steel, whereas Heading 7308 applies to plates, rods, angles, shapes and sections prepared for use in structures. The determining factor was whether the goods were prepared for use in structures. On the facts, they were not so prepared. The Board circular also supported classification under Heading 7308 only where cold roll formed sections were prepared for use in structurals, and therefore did not assist the Revenue. The earlier Tribunal decision holding classification under Heading 7216 was treated as governing, and the circular was held not to have binding force on quasi-judicial authorities.

Conclusion: The goods were correctly classifiable under Heading 7216, and the Revenue's appeal failed.

Ratio Decidendi: Cold-rolled steel shapes and sections that are not further worked and are not prepared for use in structures fall under Heading 7216 rather than Heading 7308; trade circulars cannot override the proper tariff classification.

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