It looked like a corrosion pit to me. I did not see a specification for corrosion pits in the neck on the outside. Is the neck considered part of the crown? Maybe they aren't considered. So IMO, there is no spec to condemn this cylinder. Good marine practice and common social sense would dictate that the neck is weakened by the pit, so there is no reason (at $150 new and $100 used) to take a risk.
Frank, read the definition of the crown:
crown: The dome-shaped top portion of the cylinder which includes the distance between the top facing down to where the sidewall begins. The aluminum in this area is thicker than in the sidewall. See FIGURE 5.
The text "top facing down" means looking down from the top. However, Figure 5 is unambiguous and includes both the shoulder and neck on the exterior.
I would call the area in question with the missing chunk a dig. As such, section 4B would apply which applies to all parts of the exterior:
4B CUTS, GOUGES, SCRATCHES
Check for cuts, digs, gouges and scratches. (See APPENDIX G for definitions. See PHOTOS 2 and 3.)
Measure the length, depth and location of all cylinder surface cuts, digs, gouges or scratches.
CONDEMN all cylinders with surface cuts, digs or gouges in the metal that are either longer than six inches (152mm), or deeper than 0.030 inch (0.76 mm).
Look at Photo 3 which in many ways is similar - a chunk of metal is missing but at the base.