Steel mill scrap classification under Chapter 72 secured exemption under Notification 208/83 for the goods.

Industrial scrap arising in steel manufacture was classified as iron and steel scrap under Chapter 72, not as products under Chapter 73. Applying the Supreme Court's classification ratio on steel mill scrap and the Board's view that rail cuttings are not track construction materials, the Tribunal treated the goods as falling under Heading 7210.90. On that classification, the exemption under Notification 208/83 was held available.

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Issues: Whether industrial scrap arising in the course of manufacture of steel products is classifiable as re-melting scrap under Chapter 72 or as products under Chapter 73, and whether the exemption under Notification 208/83 is available.

Analysis: The scrap in question was held to fall within the category of iron and steel scrap covered by Chapter 72 rather than products under Chapter 73. The decision followed the ratio of the Supreme Court on classification of steel mill scrap and also noted the Board's circular indicating that rail cuttings are not track construction materials and are more appropriately classifiable under Heading 7210.10, with exemption available where the goods fall under Heading 7210.90. On that basis, the Tribunal concluded that the goods were correctly classifiable under Chapter 72.

Conclusion: The goods were classifiable under Heading 7210.90 and the exemption under Notification 208/83 was available.

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