Tariff classification turns on the imported goods' actual condition, not intended end use, for additional customs duty.

Imported stainless steel wire coils had to be classified for additional customs duty according to their actual condition at the time of import, not their intended use as welding electrodes. Because the goods were not coated with flux or cut to size and were not finished electrodes capable of immediate use, Item 50 of the Central Excise Tariff was unsustainable. The more specific entry, Item 26AA(ia), applied to the wire coils, and the consequential refund followed from that reclassification in the importers' favour.

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Issues: Whether the imported stainless steel wire coils, intended for manufacture of arc welding electrodes but not coated with flux or cut to size, were classifiable for additional customs duty under Item 50 of the Central Excise Tariff or under Item 26AA(ia) of the Central Excise Tariff.

Analysis: The imported goods were stainless steel wire coils and were not in the form of finished welding electrodes. The record did not support the assumption that the goods, as imported, were capable of being used straightaway as welding electrodes. The proper tariff entry had to be determined by the actual nature and condition of the imported goods, and steel wire fell within the more specific item relied upon by the appellants.

Conclusion: The assessment under Item 50 was unsustainable and the goods were liable to additional customs duty with reference to Item 26AA(ia) of the Central Excise Tariff; the refund consequential to such reclassification was due to the appellants.

Final Conclusion: The appeal succeeded and the impugned assessment was set aside, with reclassification in the appellants' favour and consequential refund relief.

Ratio Decidendi: For additional customs duty, imported goods must be classified according to their actual condition and specific tariff description, not on the basis of intended end use as finished goods.

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