Used railway axles as melting scrap: absence of proof of serviceability supported scrap classification and defeated confiscation.

Old and used railway axles imported as heavy melting scrap were analysed against the distinction between melting scrap and second-hand serviceable goods requiring a specific import licence. The text notes that the importer claimed actual-user status and intended use for melting, while the record contained no definite expert opinion showing the goods were serviceable. Relying on cited precedent that old rails, axles and similar used items may be treated as scrap unless shown to be usable or serviceable, it states that the absence of evidence of serviceability supported classification as scrap. On that basis, the licence objection and confiscation were said not to survive.

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Issues: Whether old and used railway axles imported as heavy melting scrap were liable to be treated as scrap or as second-hand serviceable goods requiring a specific import licence, and whether confiscation of the goods was sustainable.

Analysis: The import was claimed as heavy melting scrap under Notification No. 21/2002-Cus, with the importer asserting actual-user status and use for melting purposes. The record showed no definite expert opinion that the goods were serviceable. The cited precedent treated old and used rails, axles and similar items as scrap, and also recognised that used goods are not scrap unless shown to be usable or serviceable. On the facts, the absence of evidence of serviceability supported the importer's case that the goods were melting scrap rather than prohibited second-hand goods.

Conclusion: The goods were held to be scrap and not serviceable second-hand goods, so the licence-based objection and confiscation could not stand.

Final Conclusion: The appeal succeeded and the impugned order was set aside.

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