Residue classification under Central Excise tariff rejected for furnace skull scrap with minimal metallic content

Furnace skull or skull scrap generated during melting of iron ingots and steel scrap for steel castings was treated as a residue, not as steel ingots under Tariff Item 26. The material was described as largely slag, sand, lime and earth with only a small metallic content, and an identical classification issue had already been resolved against duty. Because the goods' description was not successfully challenged and the facts were materially the same, the levy under Tariff Item 26 was held not sustainable and the revision application succeeded.

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Issues: Whether furnace skull or skull scrap, arising as residue in the course of melting iron ingots and steel scrap for steel castings, was liable to duty under Tariff Item 26 of the Central Excise Tariff.

Analysis: The material in question was found to be a residue consisting largely of slag, sand, lime and earth, with only a small metallic content. The dispute had already been decided in an identical matter, where the same type of scrap was held not to be steel ingots under Tariff Item 26. As the facts were not materially different and the description of the goods had not been successfully challenged, the earlier view was applied to the present case.

Conclusion: The levy under Tariff Item 26 was not sustainable and the revision application succeeded.

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