TaxTMI 
TaxTMI 
2015 (2) TMI 299
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....p originated from dismantled transformer . The classification of the goods were sought under Tariff Item 72044900 of the first schedule of the Customs Tariff Act, 1975 @ Basic Customs Duty 5% + Additional Customs Duty 12% + Education Cess 2% + Higher Education Cess 1% + Special Additional Duty 4% ad velorem. The assessable value declared for the impugned five consignments as Rs.,1,09,75,017/-. The goods were taken up for examination on the first check basis and on examination of the goods, the Dock Officers reported that on visual examination it is difficult to say whether the goods have been originated from old and used dismantled transformers or not, but goods appeared to be scrap . It appeared that the goods did not conform to the definition of scrap as per section notes 8(a) of the Section 15 of Customs Tariff Act, 1975 read with explanatory notes of harmonized commodity description and coding system (HSN) and therefore the said goods are not in the nature of scraps but old and used Silicon Electrical Steel Strips and therefore their import is not permitted under para 2.17 of the Foreign Trade (2009-2014) Policy and CBEC instruction dated 9.7.2014 read with Steel and Steel Prod....
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....gement (i) M/s.Ansun System Consulting (P) Ltd. vs. Commissioner of Customs(Port), Kolkata - 2005 (179) ELT 511 (Tri.-Del.), (ii) Kishore Kr.Agarwal vs. CC(Port) 2010 (255) ELT 138(Tri.Kol.) and (iii) SPS Metal Cast & Oils Ltd. vs. CC(Port), Kol 2004 (163) ELT 265(Tri.-Kol). It is submitted that in all these cases similar contention regarding classification of the goods originated from dismantled, old and used transformer as raised and it was held that Silicon Electrical Steel Strips/Scraps are scraps permissible for import without any license and declaration, as such does not amount to mis-declaration either in their description or value under the Customs Tariff Act and/or the Act. 3.2 He submitted that in following decisions, it has been held that if the goods are serviceable but cannot be used as such then it is to be treated as scrap. (i) Patiala Castings (P) Ltd. vs. UOI 2003(156)ELT 458(P & H)(para 21 to 2) (ii) CC vs. Bobsons Corpn. 2014(301)ELT 423(T). 3.3 It is the submission that imported goods being old, used and rusty which have several number of holes because of nuts and bolts used as such having traces of oils on the surface of the goods are not usable, bu....
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....ertificate also duly certified that the said goods were scrap. The Ld.Sr.Advocate submitted that as per report of the Chartered Engineer the goods were found to be old, used and rusty most of which have several number of holes because of nut and bolts used and that traces of oil were found on the surfaces of the goods, which are from old and used dismantled transformer. On the basis of the said findings on examination, the Chartered Engineer thereafter certifies as under : (i) the goods to be originated form old, used and dismantled transformer, (ii) the goods are in the nature of scrap, (iii) the goods cannot be re-used as such in its present condition without any further processing, (iv) the goods in its present condition confirm to description of scrap , (v) ISRI Code of the goods not found. It is the contention that on the basis of these evidences on record the said goods are scrap classifiable under CTH 7204.4900 and there is no contrary evidence enclosed in either the show cause notice or in the impugned order. 3.7 It is submitted that no cogent reasons are given either in the show cause notice or the impugned order for rejecting the said certificate which are in favour....
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.... of Ansun Systems Consulting Pvt.Ltd. and Kishore Kumar Agarwal (supra),. the Tribunal has not discussed regarding the goods that are usable/re-usable in nature and therefore the facts of the present case are distinguishable. It is submitted that the Tribunal in these cases passed the order prior to steel orders came into force and consequent circular issued by the Board. 5. Heard both the sides. We find that the issue involved in the present case is whether the imported goods are in the nature of scraps and freely importable or should be treated as old and used CRGO Strips whose import is restricted under the provisions of FTP, 2009-2014 read with Steel and Steel Products Quality Control Orders (supra) and the impugned Board s Circular. 6. We notice that while passing the order, the Ld.Commissioner has stated that in view of reported misuse of substandard Strips(old and used) being sold to some local transformer manufacturers, for use in manufacture of substandard transformers and sold to electric supply company, Ministry of Steel has intimated the department of Revenue, Ministry of Finance that the Quality Control Orders (supra) has been enforced on all the grades of CRGO S....
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....n the basis of legal text, section notes and chapter notes. As per H.S.N. Notes Waste and Scrap means :- 8.- In this Section, the following expressions have the meaning hereby assigned to them: (a) Waste and scrap Metal waste and scrap from the manufacture or mechanical working of metals and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons. (b) Powders Products of which 90% or more by weight passes through a sieve having a mesh aperture of 1 mm. 72.04 Ferrous waste an scrap; remelting scrap ingots of iron or steel. 7204.10 - Waste and scrap of cast iron - Waste and scrap of alloy steel: 7204.21 - Of stainless steel 7204.29 - Other 7204.30 - Waste and scrap of tinned iron or steel - Other waste and scrap : 7204.41 - Turnings, shavings, chips, milling waste, sawdust, filings, Trimmings qand stampings, whether or not in bundles 7204.49 - Other 7204.50 - Remelting scrap ingots (A) WASTE AND SCRAP The heading covers waste and scrap or iron or steel, as defined in Note 8(a) to Section XV. Such waste and scrap of iron or steel is of a miscellaneous nature and generally take....