Classification of used CI moulds as scrap upheld when post-use goods were no longer fit for use as moulds.

Used CI moulds, once cleared after use and no longer capable of functioning as moulds, were to be classified on the basis of their actual condition at the time of clearance. The department's treatment of the goods as scrap under Heading 7204.90 was sustained because the articles had been obtained for manufacture, credit had been taken, and their post-use state showed they had ceased to be moulds for excise purposes. The classification as scrap and the consequential duty demand were upheld.

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Issues: Whether used CI moulds, cleared after use, were classifiable as scrap under Heading 7204.90 and liable to duty.

Analysis: The goods were obtained as moulds for use in manufacture and credit was availed. After use, they were cleared in a condition in which they were no longer capable of being used as moulds. On those facts, the goods at the time of clearance were to be treated according to their actual condition and not as moulds. The classification adopted by the department as scrap under Heading 7204.90 was therefore supported.

Conclusion: The classification and duty demand were upheld and the appeal was rejected.

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