TaxTMI 
TaxTMI 
2016 (12) TMI 1034
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....ng Authority. Under this OIO dated 15.02.2016 Adjudicating Authority has held 'Broken Copper Cathode' as 'Waste and Scrap' of CTH 74040019 for which pre-shipment inspection certificate is required and accordingly confiscated imported goods under Section 111(d) & (m) of the Customs Act, 1962 and also imposed penalty upon the appellant under Section 112 (a) (i) of the Customs Act, 1962. 2. Shri S.K. Mehta (Advocate) appearing on behalf of the appellant argued that appellant is an actual user and has imported broken copper cathodes as refined copper for use in the manufacture of stainless steel and ferro-alloys. It is the case of the appellant that purity of broken copper cathodes imported is 99.60% and the value is also commensurating to t....
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....8(Tri.-Chennai)]. (iii) Anugraha Valva Castings Ltd.-vs.-Commr. Of Cus.(Seaport), Chennai[2013(292) E.L.T.86(Tri.-Chennai)]. (iv) Commr. Of Customs, Chennai-vs.-Pushpit Steels (P) Ltd.[2015(329)E.L.T. 833 (Tri.-Chennai)]. 3. Shri K.C. Jena, ADC(AR) appearing on behalf of the Revenue argued that imported goods are not useable at all as copper cathodes as per Chartered Engineers opinion obtained and has to be considered as 'waste and scrap' of CTH 7404 by virtue of section note-8 of Section -XV of Customs Tariff Act and chapter note given under Headings 7204, as made applicable by HSN notes under chapter heading 7404. That all categories of waste and scrap need pre-shipment inspection certificate under FTP and adjudicatio....
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....can be treated as broken parts of Copper Cathodes because during examination the goods/materials were found in the form of broken Copper cathodes strips of various shapes/sizes. The goods/materials are not waste/scrap, these are broken parts of Copper Cathodes. The condition of the goods/materials were such that they have lost their mechanical strength. 3) If waste/scrap, what is the ISRI Code: The goods/materials are not waste/scrap these are broken parts of copper cathodes and these are not covered strictly in the ISRI Code. 4) Whether the goods/materials can be used as such: The goods/materials cannot be re-used because the goods/materials have lost their desirable properties and they have no re-useable value and can only be used f....
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....oods satisfy the definition of Refined Copper as defined in the Customs Tariff. 4.3. Refined Copper is classifiable under CTH 74031100 to CTH 74031900 as follows: "- Refined Copper 7403 11 00 -- Cathodes and sections of cathodes 7403 12 00 -- Wire-bars 7403 13 00 -- Billets 7403 19 00 - Other" 4.4. It is observed from the above tariff description that not only copper cathodes but 'Sections of Cathodes' are also covered under 7403 11 00 as a category of 'Refined Copper'. Further CTH 7403 19 00 also gives scope for other categories of copper which could be 'Refined Copper'. As per Rule-1 of the General Rules of Interpretation to the first schedule to the Customs Tariff Act, 1975 classification of imported goods shall be d....
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....sed for recovery of metal by remelting or for the manufacture of chemicals. Appellant argued this point before the Adjudicating Authority but the same was brushed aside by the Adjudicating Authority in para 15 of the OIO dt. 15.02.2016, as not relevant. Department cannot rely upon one portion of a chapter note of HSN explanatory notes on the one hand and ignore the other part of the same chapter note on the other hand. Secondly, HSN explanatory notes have to be relied upon in interpretation of Customs Tariff as the former is the mother of the latter where chapters of Customs Tariff & HSN have been harmonized. Appellant herein is neither a trader nor the manufacturer of copper ingots etc. but is an actual user for the manufacture of copper a....