Commercial identity governs classification of steel cuttings; off-cuts were placed under Heading 72.10, not waste and scrap.

Side cuttings and end cuttings arising in the manufacture of steel angles, shapes and sections were held not to be classifiable as waste and scrap merely because they were cut pieces. The applicable principle was that such off-cuts must be classified according to their commercial identity, particularly where they are not fit for recovery of metal. On that basis, the goods were classifiable under Heading 72.10 and not under the competing headings urged by either side. The penalty imposed on the appellant was set aside.

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Issues: Whether side cuttings and end cuttings arising in the manufacture of steel angles, shapes and sections are classifiable as waste and scrap under one tariff entry or as strips and skelps under another tariff entry.

Analysis: The disputed goods consisted of cuttings arising from the manufacture of steel products. The controlling principle applied was that off-cuts or remaining portions of steel sheets are not to be treated as waste and scrap merely because they are cut pieces; where they are not fit for recovery of metal, they fall to be classified according to their commercial identity under the relevant tariff heading. Applying that principle, the Court held that the goods were not classifiable as waste and scrap under the heading claimed by the assessee, nor under the alternative headings pressed by the Revenue, but under Heading 72.10.

Conclusion: The cuttings were held classifiable under Heading 72.10 and not under the competing headings claimed by either side. The penalty imposed on the appellant was set aside.

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