Classification of defective steel goods upheld, and the Department's enhanced valuation was rejected.

Imported consignments of second and defective pipes, plates, re-rollable HMS scrap and defective steel plates were accepted under Heading 7204 49 00 because prior departmental treatment and the original authority's own findings showed the goods were not fresh plates. On that basis, the assessee's declared classification was upheld. Once the declared classification was accepted, the Department's enhanced valuation also could not stand, and the declared value was accepted. The Department's contrary view on both classification and valuation was rejected.

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Issues: Whether the imported goods were correctly classifiable under Heading 7204 49 00 as claimed by the assessee and whether the enhanced value adopted by the Department was liable to be set aside.

Analysis: The imported consignments were examined and found to be second and defective pipes and plates, including re-rollable HMS material scrap and defective steel plates. The prior departmental orders had treated the same goods under Heading 7204 49 00, and the original authority itself recorded that the goods were not fresh plates. In that view, the classification adopted by the assessee was accepted. Once the goods were held to fall under the assessee's declared classification, the enhancement of value made by the Department was also not sustainable and the declared value had to be accepted.

Conclusion: The assessee succeeded on classification and valuation, and the Department's contrary view was rejected.

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