Classification of CRGO sheet offcuts and rejected sheets turned on whether they were waste and scrap or goods under Heading 7225.10.

Offcuts and rejected sheets of CRGO sheets were disputed as either waste and scrap or CRGO sheets under Heading 7225.10. The Tribunal noted that cut portions used in manufacture do not automatically become waste and scrap, but the record did not clearly establish whether the goods cleared were only scrap offcuts or also rejected sheets of a different character. Because the factual material was inadequate, the classification could not be finally determined at that stage. The matter was remanded to the Assistant Commissioner for fresh decision in light of the Supreme Court ruling.

---

---

Issues: Whether the offcuts and rejected sheets of CRGO sheets were classifiable as waste and scrap or as CRGO sheets under Heading 7225.10.

Analysis: The dispute turned on the nature of the goods actually cleared. Reference was made to the Supreme Court ruling that cut portions used in manufacture do not automatically become waste and scrap, but the record before the Tribunal did not clearly establish whether the cleared goods were merely scrap offcuts or included rejected sheets of a different character. In the absence of adequate factual material, the correct classification could not be finally determined at that stage.

Conclusion: The classification issue was not finally decided on merits and the matter was remanded to the Assistant Commissioner for fresh decision in the light of the Supreme Court ruling.

---