Classification of steel wires manufactured out of slitting scrap/side cutting scraps of hot rolled strips - Central Excise - 26/88

Classification of steel wires manufactured out of slitting scrap/side cutting scraps of hot rolled strips Circular No. 26/88 Dated 2-12-1988 [From F. No. 139/89/87-CX.4] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of steel wires manufactured out of slitting scrap/side cutting scraps of hot rolled strips. A doubt has been expressed as to whether slitting scrap of steel which arises during the course of manufacture of articles of steel like 'pipes and tubes' would merit classification as waste and scrap under sub-heading 7203.20 prior to 1-3-1988. Such slitting scrap is primarily meant for manufacture of products of steel, for example, wires. In view of the end-use of the slitting scrap which is other than for the purpose of re-melting, the classification of such slitting scrap would go out of the definition of waste and scrap prior to 1-3-1988. The definition of 'waste and scrap' prior to 1-3-1988 reads as 'waste and scrap of iron and steel which is fit only for recovery of metal or for use in the manufacture of chemicals'. This definition covered only such waste and scrap which is fit only for re-melting or for use in the manufacture of chemicals. As such the slitting scrap does not answer the definition of waste and scrap. In this context, attention is invited to the instructions contained in Ministry's F.No. B.28/7/83-TRU, dated 1-8-1983 wherein it was clarified that other kinds of products commonly known as re-rollable and industrial scrap which are used for purposes other than melting would not merit classification as waste and scrap. These products would have to be classified under the relevant sub-items of the Tariff Item 25 as per the definitions given in the Explanation to the said item. Re-rollable scrap would merit classification under either sub-item (9) or (11) of the erstwhile Tariff Item 25. 2. After 1-3-1988, consequent on alignment of Chapter 72 with the corresponding Chapter of HSN, the definition of waste and scrap has undergone a change which now reads 'waste and scrap means metal waste and scrap from the manufacture or mechanical working of metals and metal goods definitely not usable as such because of breakage, cutting up, wear and other reasons. In view of the change in the definition of waste and scrap, the re-rollable waste and scrap of steel would also get covered by the definition and merits classification under sub-heading 7204 as waste and scrap of steel. 3. Pending cases may be disposed of in the light of these instructions.