Mill scale classification under excise tariff: oxidized steel scale falls under the heading for scaling, not waste and scrap.

Mill scale generated during the manufacture of seamless steel tubes is an oxidized surface layer formed in heating and hot working, and it does not answer the description of waste and scrap under Heading 7204.90 because that tariff concept covers metal waste rendered unusable as such. The more specific entry for slag, dross, scaling and other waste from the manufacture of iron or steel under Heading 26.19 applies to material of this kind. Mill scale was therefore classified under Heading 26.19 rather than Heading 7204.90, in favour of the assessee.

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Issues: Whether mill scale generated in the manufacture of seamless steel tubes is classifiable as waste and scrap under Heading 7204.90 or as scaling under Heading 26.19 of the Central Excise Tariff.

Analysis: Mill scale is an oxidized surface layer formed on steel during heating and hot working. The definition of waste and scrap under Section Note 6(a) of Section XV contemplates metal waste arising from manufacture or mechanical working and rendered unusable as such. On the facts found, the mill scale did not arise as waste and scrap of the kind covered by Heading 7204.90. Heading 26.19 specifically covers slag, dross, scaling and other waste from the manufacture of iron or steel, and the material in question answers that description.

Conclusion: Mill scale was held not classifiable under Heading 7204.90 and was classifiable under Heading 26.19, in favour of the assessee.

Ratio Decidendi: Mill scale formed as an oxidized surface during steel processing is scaling, not waste and scrap, and is classifiable under the tariff entry specifically covering scaling.

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