Broad import policy wording on scrap and cuttings covers processed rejections; licence coverage was denied for left-over pieces.

Import policy entry language covering defective or scrap material and cuttings must be given its ordinary scope and cannot be narrowed by adding words not present in the text. On the facts discussed, rough synthetic stones and cubic zirconia rejections described as small pieces, end portions and left-over material from processed boules were treated as cuttings or scrap rather than prime material. As a result, the goods were outside the import licences issued under Appendix 17 and fell within Serial No. 147 of Appendix 2 Part B, with licence coverage denied and the departmental classification sustained.

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Issues: Whether the imported goods, described as rough synthetic stones and cubic zirconia rejections, were covered by the import licences issued under Appendix 17, or were excluded by Serial No. 147 of Appendix 2 Part B as defective or scrap material or cuttings.

Analysis: The imported goods were described in the invoices as small pieces and rejections arising after the material had been worked upon. Paragraph 5 of Appendix 17 permitted import only where the item in Appendix 2 Part B was specifically described for import, and the entry in Serial No. 147 covered all defective or scrap materials as well as cuttings other than the stated exceptions. The narrow reading sought to confine that entry to ferrous and non-ferrous metal items was rejected because no such limitation appeared in the text of the entry. The expert opinions on record showed that the goods were end portions or left over pieces from full boules and were waste from the cutting process. On that basis, the goods answered the description of cuttings and did not qualify as prime material covered by the licence.

Conclusion: The imported goods fell within Serial No. 147 of Appendix 2 Part B as cuttings or scrap and were not covered by the import licences; the finding was against the assessee.

Final Conclusion: The appeal failed and the departmental classification and denial of licence coverage were sustained.

Ratio Decidendi: Where an import policy entry uses broad language such as defective or scrap material and cuttings, the entry must be given its ordinary scope and cannot be restricted by reading in words not found in the text; goods that are rejections or left over pieces from processed material fall within that entry.

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