Prime quality steel slabs and concessional duty upheld after MSME retest confirmed compliance with prescribed standards.

Imported non-alloy steel slabs were accepted as prime quality where the MSME retest, read with the applicable standards, showed the goods were within prescribed limits and met prime chemistry requirements. The Tribunal found that the adjudicating authority had ignored material parts of the MSME report and had relied on an uncertified unofficial translation of overseas material that did not disprove the invoice or establish that the goods were non-prime. As the same MSME report had also been accepted for other consignments, denial of concessional duty under Notification No. 21/2002-Cus. was unsustainable, and the duty demand, confiscation, redemption fine and penalties were set aside.

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Issues: Whether the imported non-alloy steel slabs were prime quality and entitled to concessional duty under Notification No. 21/2002-Cus., and whether the duty demand, confiscation and penalties could be sustained.

Analysis: The goods were initially tested by NML, but a later retest was carried out pursuant to the High Court's directions by MSME. The MSME report, read with the relevant standards, recorded that the slabs were within the prescribed limits and concluded that they were of prime chemistry and met the requirements of prime quality non-alloy steel slabs. The adjudicating authority had ignored material portions of that report, including the remarks showing compliance with the prescribed limits, and had also relied on an unofficial translation of overseas material that was not duly certified and did not discredit the invoice or establish that the goods were non-prime. The Tribunal also noted that the Department had accepted the same MSME report in respect of other consignments.

Conclusion: The MSME report was accepted, the goods were held to be prime quality, and the denial of concessional duty was unsustainable. The duty demand, confiscation, redemption fine and penalties were set aside.

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