A melted cylinder boot is not a reason to condemn a cylinder or to require another hydro, but it should prompt you to ask some further questions, as was done. In this case the customer admitted to placing the cylinder on a stove burner, which means that it was exposed to a temperature of (cut me some slack here, I dont have my PSI manual in front of me) 285 degrees f or more (Im assuming an AL cylinder). It doesnt matter if the cylinder as a whole was only raised 50C, some part of the cylinder was exposed to 285f or more.
Theres not ifs, ands or buts in this case; the cylinder must be condemned. Using a cold chisel you quite obviously strike out the DOT markings on the cylinder (you DID of course get a signed release from the customer before hand stating that their cylinder could be condemned and rendered unusable, didnt you?)
To pass the buck onto another shop or a hydro facility by letting a cylinder that you know must be condemned out of your shop without marking it as condemned opens you up to a HUGE amount of liability. If an accident were to happen and during discovery it was found out that you knew it was exposed to high heat and did nothing about it, youd be in deep sneakers.
Cmon self regulatnig SCUBA industry, step up to the plate or become regulated.
Roak