Steel melting scrap classification denied for end cuttings of billets, bars and flats under the concessional duty notification.

Steel melting scrap, for purposes of Notification No. 53/80-CE, was understood as scrap arising in the course of steel melting or steel making, not merely material fit for melting. End cuttings of steel billets, bars and flats arose at an earlier stage and were treated as distinct from scrap generated during the melting process. Fresh unused steel melting scrap was also distinguished from unused steel scrap for melting. On that interpretation, the end cuttings did not fall within the notified description and the concessional duty benefit was unavailable.

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Issues: Whether end cuttings of steel billets, bars and flats could be treated as steel melting scrap or fresh unused steel melting scrap for claiming the concessional duty benefit under Notification No. 53/80-CE.

Analysis: The concessional rate under Notification No. 53/80-CE was available only where steel ingots were manufactured from the specified materials. The expression steel melting scrap was held to refer to scrap arising in the course of steel melting or steel making, and not to scrap merely fit for melting. End cuttings of billets, bars and flats arose at an earlier stage and were distinguishable from scrap generated during the melting process. The reasoning was supported by the distinction drawn in prior decisions between steel melting scrap and other forms of scrap, as well as by the trade notice and tariff advice showing that fresh unused steel melting scrap was different from unused steel scrap for melting.

Conclusion: The end cuttings were not covered by the description of steel melting scrap or fresh unused steel melting scrap, and the exemption under Notification No. 53/80-CE was not available.

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