Metal waste and scrap classification turns on Section XV's tariff definition, not mere commercial use of cuttings.

Section Note 6(a) of Section XV was treated as the controlling test for classifying metal waste and scrap arising from manufacture or mechanical working of metals. The note was read as covering such material on its own tariff definition, without adding the older circular-based requirement that it must be fit only for recovery of metal or chemical use. Commercial use of the cuttings did not, by itself, exclude them from waste and scrap. The record was incomplete, however, because the actual processing of the tin cuttings into articles such as sieves, buttons and toys had not been examined, and the order below was not a speaking order. The matter was therefore sent back for fresh classification on the correct facts and tariff test.

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Issues: Whether tin cuttings and trimmings arising in the manufacture of metal goods were classifiable as waste and scrap under Heading 72.04 or as cuttings of tin plates under Heading 72.12, and whether the matter required reconsideration.

Analysis: Section Note 6(a) of Section XV was treated as the governing test for determining whether metal waste and scrap arising from manufacture or mechanical working of metals falls within the tariff description. The note was read as covering metal waste and scrap from manufacture or mechanical working of metals without importing the older circular-based qualification that the material must be fit only for recovery of metal or for use in chemicals. The fact that the material had some commercial use did not by itself take it out of the definition of waste and scrap. However, the actual manner in which the cuttings were processed for manufacture of articles such as sieves, buttons and toys had not been examined, and the record before the Tribunal was incomplete. The appellate order also was not a speaking order, as it merely followed an earlier order that was not on record.

Conclusion: The classification issue was not finally determined on the available record, and the impugned order was set aside with a direction for fresh consideration by the Assistant Collector.

Final Conclusion: The dispute was sent back for a fresh decision on classification after examining the relevant facts and applying the correct tariff test.

Ratio Decidendi: Under Section XV of the Central Excise Tariff, metal waste and scrap arising from manufacture or mechanical working of metals is to be assessed by the tariff definition itself, and not excluded merely because it has some market use or value.

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