TaxTMI 
TaxTMI 
2006 (7) TMI 511
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.... facts of the case are as under :- (i) The respondents herein M/s. Tata Iron & Steel Company Ltd. filed five bills of entries for clearance of the goods described as "Non-alloy 100% Re-Rollable scrap consisting of Plate Cuttings" and claimed duty free clearance under Notification No. 204/92 against advance licence. (ii) The examination of the goods covered by the said bill of entry by the Special Task Force revealed that the goods consisted MS/SS pipes which were serviceable in nature. Out of the total 23 containers, four containers were released as they were found to contain re-rollable scrap, as declared in the bill of entry. (iii) In respect of remaining 19 containers, a view was entertained t....
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....sition of penalty upon them. 4. The said notice was adjudicated by the Commissioner who dropped the proceedings on the ground that the goods in question were scrap in terms of the definition of waste and scrap as per Note 6(a) of Section XV of Customs Tariff Act. He also observed that as per SGS Certificates, 80% of the pipe pieces were found internally with a coat of thick oil, cement slurry and the balance pipes which was dried internally were found heavily rusted from inside and the pipes were found gas cut with pipes edge unfinished and irregular and in different lengths and about 5% of the pipes were found bend and no material/pipe classification marks were visible. He accordingly observed that a buyer of pipes to use them in d....
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.... further mechanical working and that they are not covered under Sr. No. 708 of the definition of re-rollable scrap as defined under the DEEC Exemption scheme of Handbook Vol.-II of the EXIM Policy 1992-97." 6. Further he has examined SGS reports and observed as :- "From the above report of SGS it would appear that the goods were positively old and used rusty/heavily rusty pipes originating from an oil field and unless the end-use was specified, commenting on the serviceability was not possible, and that 98% of the material was found to be only pipe pieces and therefore in their opinion the material did not seem to be in conformity with the cargo descriptive in the B/L No. AEL/KLT/047 dated 4-5-94, wh....
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....te 6(a) of Section XV of the Customs Tariff, is as under :- "Metal waste and scrap from the manufacture of mechanical working of metals and metal goods definitely not usable as such because of breakage cutting up, wear or other reasons." (ii) The waste and scrap as covered under Heading 72.04 which is defined as above, however, this heading excludes articles which with or without repair or renovations can be reused for their former purpose or can be adapted for other uses; it also excludes articles which can be re-fashioned as metal. (iii) Since the material cannot be used for the purpose i.e. of pipes, being choked, pitted and having irregular ends and gas cuts and bends, and of different ....
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....nnot place any reliability on the opinion expressed by the Assistant Marketing Manager of Tatas since he has not been questioned and confronted by the books published by his employer's parent company i.e. on how the book published by M/s. Tata Iron & Steel Co. Ltd. 1992 defining hollow sections, and how the goods in question are not hollow sections and therefore not covered by the licence. I would therefore rely on the totality of Mr. Moondhra's statement who is an experienced re-roller, to find the goods under import to be re-rollable scrap. (e) I find that wherever the licensing authority do not want to permit the import of hollow sections for raw materials for re-rolling, they have, in the DEEC books given a de....