Melting scrap classification upheld for old iron and steel goods used for melting, with exemption restored and penalties set aside.

Old and used iron and steel goods imported for melting, and not serviceable as original articles, were classifiable as melting scrap under Heading 72.04 rather than as rails under Heading 73.02. Consistency with the assessee's own earlier classification decision was applied because the tariff descriptions and notification language had not changed. The broader scrap classification prevailed over the Revenue's exclusion argument, so exemption was available and the denial of exemption, confiscation, and penalty were set aside.

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Issues: Whether used damaged cut rails imported for melting were classifiable under Heading 72.04 as melting scrap and entitled to exemption, or were classifiable under Heading 73.02 so as to deny the exemption and sustain confiscation and penalty.

Analysis: The competing entries were Heading 72.04 for scrap and Heading 73.02 for rails. The goods were old and used iron and steel articles not serviceable as original goods and were in fact used in melting. The earlier decision in the assessee's own case had held similar goods to fall under Heading 72.04, and consistency in classification was considered necessary where tariff descriptions and notification language had not changed. The exclusion relied upon by Revenue was not treated as displacing the broader classification of the goods as melting scrap.

Conclusion: The goods were held classifiable under Heading 72.04 as melting scrap and eligible for the exemption. Denial of exemption, confiscation, and penalty were set aside in favour of the assessee.

Ratio Decidendi: Old and used iron and steel goods, when not serviceable as the original articles and used for melting, are classifiable as scrap under Heading 72.04 and cannot be denied exemption merely by treating them as rails under Heading 73.02.

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