Commercial identity governs excise classification of stainless steel patties; goods made outside a strip mill were not strips.

Tariff classification of stainless steel patties depended on their commercial identity and the statutory description in the Central Excise Tariff, not merely their shape. Patties manufactured by hot or cold rolling of duty-paid scrap or billets outside a strip mill did not answer the description of strips under Item 26AA(iii). They were therefore classifiable under the alternative residuary sub-item, Item 26AA(ia), rather than as strips. The review challenge failed, and the departmental review proceedings were dropped.

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Issues: Whether stainless steel patties manufactured by re-rolling duty-paid scrap or billets outside a strip mill were classifiable as strips under Item 26AA(iii) of the Central Excise Tariff, or under Item 26AA(ia).

Analysis: The goods were described in commercial parlance as patties and were produced by hot or cold rolling of scrap cuttings of duty-paid unused re-rolled rods or billets. The determining factor was not merely the shape of the product, but whether the goods answered the description of strips under Item 26AA(iii). On the facts, products made in a place other than a strip mill and lacking the characteristics of strips were held not to fall within Item 26AA(iii), though they remained exigible under the residuary sub-item applicable to such products.

Conclusion: The goods were not classifiable as strips under Item 26AA(iii) and were classifiable under Item 26AA(ia), in favour of the assessee.

Final Conclusion: The review challenge to the appellate orders failed, and the departmental review proceedings were dropped.

Ratio Decidendi: For tariff classification, the commercial identity and statutory description of the goods govern; patties manufactured outside a strip mill from duty-paid scrap/billet material were not strips under Item 26AA(iii) but fell under the appropriate alternative sub-item.

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