Steel strip cut-offs treated as off-cuts under tariff rules, not waste and scrap.

Cut-off portions of steel strips arising during trimming or narrowing before rolling were treated as off-cuts for tariff purposes, not as waste and scrap. Applying the Supreme Court's classification principle for cut portions of steel sheets, the Tribunal held that their scrap-like appearance did not change their tariff character. The goods were therefore classifiable under Heading 72.10 of the Central Excise Tariff Act, 1985, and not as waste and scrap fit only for remelting.

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Issues: Whether the cut-off portions of steel strips were liable to be classified as off-cuts under Heading 72.10 of the Schedule to the Central Excise Tariff Act, 1985 or as waste and scrap.

Analysis: The product consisted of cut portions arising from narrowing steel strips before rolling. The Tribunal applied the Supreme Court's ruling that such cut-off portions of steel sheets are to be treated as off-cuts for tariff purposes and are classifiable under Heading 72.10. On that basis, the plea that the goods were waste and scrap fit only for remelting was rejected.

Conclusion: The cut-off portions are off-cuts assessable under Heading 72.10 and not waste and scrap; the assessee's claim failed.

Ratio Decidendi: Cut-off portions of steel sheets or strips, when arising from the process of trimming or narrowing, are classifiable as off-cuts under Heading 72.10 and not as waste and scrap merely because they are scrap-like in appearance.

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