Tariff classification of imported acrylic scrap before amendment falls under residuary item, with duty reassessed in favour of assessee.

Acrylic plastic scrap imported before 1 March 1982 could not be brought within the expanded scope of Item 15(A), because the explanation including waste and scrap took effect only from that date. The surviving issue was tariff classification for countervailing duty, and the pre-amendment import was held to fall under the residuary Item 68. The challenge based on the scrap not being manufactured was not pursued in light of Supreme Court authority. Countervailing duty was therefore required to be reassessed on the basis of Item 68 in favour of the assessee.

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Issues: Whether acrylic plastic scrap imported prior to 1 March 1982 was classifiable for countervailing duty under Item 15(A) or under the residuary Item 68.

Analysis: The challenge to levy of excise-related duty on the ground that scrap was not manufactured was not pressed in view of the Supreme Court decision. The surviving question was the proper tariff classification for countervailing duty. Item 15(A) had been expanded by an explanation with effect from 1 March 1982 to include waste and scrap. Since the import in question was made on 7 January 1982, before that amendment, the expanded explanation could not be applied. The governing principle was that scrap imported before the amendment continued to fall within the residuary entry.

Conclusion: The imported goods were classifiable under Item 68 and not under Item 15(A), so the countervailing duty was to be reassessed on that basis in favour of the assessee.

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