Tariff classification turns on actual nature of waste and scrap; proper testing is required before final classification.

Tariff classification of waste and scrap depended on its actual character as iron or steel. The record showed that chemical or other testing was sought, but the goods were classified without first establishing that foundational fact. In a classification dispute of this kind, the authority must ascertain the nature of the goods through proper examination before making a final tariff decision. The earlier classification was therefore set aside and the matter remanded for fresh adjudication after testing by the competent authority.

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Issues: Whether waste and scrap arising in the course of manufacture of metal containers was classifiable under Tariff Heading 7203.10 as waste and scrap of iron or under Tariff Heading 7203.20 as waste and scrap of steel.

Analysis: The classification dispute turned on the basic character of the waste and scrap, namely whether it was iron or steel. The record showed that the assessee had sought chemical or other testing of the product, but the product had been classified without first determining that foundational fact. In a classification matter of this kind, the nature of the goods must be ascertained on the basis of proper examination before a final view is taken.

Conclusion: The earlier classification decision was set aside and the matter was remanded for fresh adjudication after testing by the competent authority.

Ratio Decidendi: Where the nature of goods is decisive for tariff classification, the authority must first determine the actual character of the goods by appropriate test or examination before final classification is made.

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