Cold-formed steel sections stay under Chapter 72 when not prepared for structures; contrary classification fails.

Cold-formed sections, channels and angles cut to length remain classifiable as shapes and sections of iron or non-alloy steel under Chapter 72 when they are not further worked to be prepared for use in structures. Chapter 73 applies only to goods prepared for use in structures, so unfinished cold-formed products do not shift classification merely because they may later be used structurally. An earlier Tribunal view on identical facts supported classification under heading 7216.20, and the Board circular cited by Revenue did not displace that position. The correct classification was heading 7216.20, not 7308.90, and the contrary demand could not be sustained.

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Issues: (i) Whether the goods manufactured by the appellant, being cold-formed sections, channels and angles cut to length, were classifiable under Chapter 72 or under Chapter 73 of the Central Excise Tariff Act, 1985.

Analysis: The goods were found to be obtained by cold forming and were not further worked so as to be prepared for use in structures. Chapter 72 covers shapes and sections of iron or non-alloy steel, whereas Chapter 73 applies to goods prepared for use in structures. The earlier Tribunal view on identical facts had held that such goods remain classifiable under heading 7216.20, and the Board circular relied upon by the Revenue did not override that conclusion.

Conclusion: The goods were correctly classifiable under heading 7216.20 and not under heading 7308.90; the demand based on the contrary classification was unsustainable.

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