TaxTMI 
TaxTMI 
2014 (4) TMI 497
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.... Tracks Scrap (HMS) under the Bill of Entry filed for clearance of the imported goods. On examination, the goods were found to be used steel rails. Opinion from an expert was obtained who opined that the strength of the imported material was poor and that these railway tracks could not be re-used and have only scrap value. The adjudicating authority held that goods imported are re-rollable and classified the same under CTH 7302. It was further held that imported goods are restricted items as per Para 2.17 of the Foreign Trade Policy 2004-2009 (Vol.I) and are liable to confiscation under Section 111 (m) and Section 111 (d) of the Customs Act, 1962. The adjudicating authority accordingly confiscated the goods and allowed redemption, on paymen....
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....ectly decided by the first appellate authority under CTH 7204 in view of the following case laws recently decided: i) Hinduja Foundaries Ltd Vs CC (Imports) Chennai [2013 (288) ELT 571 (Tri-Che.)] ii) Indo Deusche Trade Links and Uni Interlinks Vs CC (Imports) Chennai [2014 (2) TMI 779-Chennai] 5. Heard both sides and perused the case records. It is observed that the issue of classification and valuation of the old and used railway tracks is no more res-integra and has been decided by Chennai Bench in the case of Indo Deusche Trade Links and Uni Interlinks Vs CC (Imports) Chennai (supra). Para 28 to 35 of this judgment are releva....
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.... (iii) There had been frequent change of opinion among the authorities and the authorities about classification of the goods whether under 72.04 or 73.02 (iv) Between the two different competing headings 72.04 and 73.02, 72.04 is more appropriate because the goods are more in the nature of scrap and not in the nature of rails 30. The position is that the goods were 'cut used rails' as per the submission of the appellants as seen recorded in the impugned orders. As per examination report the goods were 'used rails of assorted sizes'. From this it is evident that the goods were not suitable for use as rails. Revenue also has not produced any evidence that these goods were capable of use as rails. The dis....
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....that case, between different heading in chapter 72 and it is not a decision to choose between a heading under headings in chapter 72 and chapter 73. Here it is to be noted Chapter 72 of the Customs Tariff only have headings for waste and scrap and not chapter 73 which covers various articles of iron and steel. The Tribunal had also noted that the Finance Ministry was originally classifying re-rollable scrap under 72.04 as is evident from S. No. 201 of Notification 21/2002-Cus as was issued originally. Originally there was condition for monitoring end use of the goods against both S. No. 200 of the notification to ensure that the goods were actually melted. The end use conditions got omitted later. This change indicates a policy change from ....