2017 (2) TMI 663

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....ewellery. One of the inputs required to manufacture the goods is brass in the shape of sheets, wires etc. For manufacture of goods, the sheets are required to be cut into smaller sizes and punched. Similarly, wires are cut to smaller sizes depending upon the design. The remnants of the punched brass sheets and wires etc. result in scrap to be sold in the domestic tariff area on payment of appropriate duty of Customs. For convenience of storage, easy transportation and safety requirements, the resultant scrap along with various impurities are heated and compressed and compressed material takes the shape of brick. The appellants have been clearing the said compressed scrap material classifying the same under heading 74040022, after assessment....

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....ssioner of Customs (Appeal) New Delhi without any success. The Order-In-Original passed by Original Authority was upheld. The present appeal is against Commissioner Appeal's Order dated 09.10.2015. 2. With the above background, we heard Shri J.M Sharma, Id. Consultant from the appellants and Shri K. Poddar, Id. Departmental Representative for the Revenue. 3. The impugned order has been challenged mainly on the following grounds: i) The disputed goods are nothing but brass scrap arising during the course of manufacture, which has been melted and compacted in the form of a brick. The department has classified the same under 74072110 as brass ingots, as against the classification of 74040022 proposed by the appellants under brass ....

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....he appropriate classification will be under 7407210 which covers brass bars. Looking to the shapes in which the goods are being cleared, the classification as a brass bar is more appropriate than the classification as brass scrap. There is no difference in rate of duty between the two classifications. In the Impugned order, mis-declaration has been alleged against the appellant. However, it is obvious that it is a classification dispute. Since two views are easily possible in the classification of a product, mis-declaration with intend to evade payment of duty cannot be alleged. Consequently, we are of the view that the order of confiscation made under Section 111(k) and 111(m) is not justified and is required to be set aside. 6. Now, we....