Tariff classification of M.S. sheet offcuts as shapes under the excise schedule, not waste and scrap.

Offcuts of M.S. sheets were classified as shapes under the Central Excise Tariff because they answered the tariff description for shapes under Heading 72.10 rather than waste and scrap under Heading 72.04. The Tribunal treated the issue as settled by a binding Supreme Court ruling and also relied on its own earlier decision in the same matter, which had already classified similar offcuts under Sub-heading 7210.10. On that basis, the offcuts could not be treated as M.S. sheets for classification purposes, and the contrary classification in the impugned order was not sustained.

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Issues: Whether offcuts of M.S. sheets are classifiable as waste and scrap under Heading 72.04 or as shapes under Heading 72.10 of the Central Excise Tariff.

Analysis: The issue was treated as no longer res integra in view of the binding Supreme Court ruling that such offcuts answer the expression used for shapes under Heading 72.10. The Tribunal also noted that in the appellant's own earlier case the offcuts had been held classifiable as shapes under Sub-heading 7210.10. Following these decisions, the offcuts could not be treated as M.S. sheets for classification purposes.

Conclusion: The offcuts are classifiable as shapes under the appropriate heading of the Central Excise Tariff and not as M.S. sheets; the classification adopted in the impugned order was not sustained.

Final Conclusion: The appeal succeeded on the classification issue and the goods were held to fall under the heading applicable to shapes rather than under the heading for M.S. sheets.

Ratio Decidendi: Offcuts of M.S. sheets are to be classified according to their character as shapes where they answer the relevant tariff description, and not as the original sheet goods.

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