Classification of broken grinding wheels as scrap rejected under residuary heading; defective wheels held non-excisable

Broken and defective grinding wheels accepted in market enquiry as scrap, rather than as grinding wheels, were held not to be classifiable under Heading 6801.90. Waste and scrap were treated as different goods from grinding wheels, and the item was found neither marketable as grinding wheels nor as parts thereof. On that basis, the residuary classification was rejected and the broken wheels were held not to be excisable goods.

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Issues: Whether broken and defective grinding wheels, accepted as scrap and not as grinding wheels in the market, were classifiable under Heading 6801.90 and exigible to duty.

Analysis: The item in question was found, on market enquiry and on the admitted factual position, to be treated as scrap and not as grinding wheels. Waste and scrap are not the same goods as grinding wheels and, on the reasoning applied, such broken and defective wheels are neither marketable as grinding wheels nor parts thereof. The residuary classification under Heading 6801.90 was therefore not justified for an item already accepted as scrap.

Conclusion: The broken and defective grinding wheels were not classifiable under Heading 6801.90 and were not excisable goods.

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