Classification of imported steel scrap as rerollable scrap upheld, sustaining denial of customs notification benefit.

Imported steel scrap was classified as rerollable scrap rather than heavy melting scrap because expert examination found it comprised substantial round bars, square bars, billets, flats and plates, and the long pieces could not be directly fed into a rerolling furnace without cutting. The Tribunal rejected the contention that rerollable scrap required a proven length restriction, and held that the assessee's claimed actual use for melting could not change the character of the goods as imported, since classification depends on the condition at import. On that basis, the denial of Notification No. 21/2002-Customs benefit was sustained.

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Issues: Whether the imported steel scrap was correctly classified as rerollable scrap rather than heavy melting scrap, and whether the benefit of Notification No. 21/2002-Customs dated 01.03.2002 was therefore inadmissible.

Analysis: The goods were found, on expert examination, to consist of round bars, square bars, billets, flats and plates of substantial dimensions and lengths. The material was also described as long pieces which could not be directly fed into a rerolling furnace without cutting. The objection that rerolling was not possible unless the material was cut to shorter lengths was rejected, as no authority was shown for the claimed length restriction on rerollable material. The Tribunal also held that the appellants' asserted actual use of the goods for melting could not alter the character of the goods as imported, because assessment depends on the nature of the goods at the time of import. Reliance was placed on the ISRI specification for heavy melting steel scrap as supporting the departmental classification.

Conclusion: The imported goods were held to be rerollable scrap and not heavy melting scrap, and the denial of the notification benefit was sustained against the assessee.

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