TaxTMI 
TaxTMI 
2017 (6) TMI 215
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....C/28603/2013 C/28604/2013 E/314/2004 Bill of Entry 6 (104 dated 04.02.00, 408 dated 18.02.00, 538-542 dated 28.02.00) 2 (212 dated 12.11.99, 167 dated 09.12.99) Demand 3,94,67,488 3,45,50,527 Penalty 50,00,000 50,00,000 Fine 1,00,00,000 1,00,00,000 Show Cause Notice Date 09.08.2000 04.08.2000 27.07.2000 Order-in-Original No. & Date Commr./Ajd./03/2013-14 dated 23.02.2014 Commr./Ajd./03/2013-14 dated 23.02.2014 92/2000 dated 07.08.2000 Order-in-Appeal No. & Date - - 467/2003-CE dated 23.12.2003 Issue Denial of exemption under Sl. No.125 of Notification No.20/1999-cus. Dated 28.02.1999 to imported Shredded Steel Scrap for failure to furnish end use certificate....
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....ssing the liquid metal / steel at the electric arc ladle furnace but is used as a coolant in the basic oxygen furnace. The basic purpose of using scrap in blast furnace is different from the purpose for which scrap is used in electric arc furnace, induction furnace or hot blast cupola. Hence, the application for end use certificate was rejected. 6. Being aggrieved by the above Order, the Appellant filed appeal before the Commissioner (Appeals) who passed impugned Order-in-Appeal No. 467/2003 upholding the rejection of end use certificate on the ground that scrap used as coolant in blast furnace is not entitled to exemption. 7. In the meanwhile, the Appellant was issued demand notices dated 04.08.2000 and 09.08.2000 by Customs Appraiser, M....
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.... use and not actual use. * Prakash Metal Crafts Industries v. Commissioner of Commercial Tax - 2016 (337) ELT 342 (M.P) * Union of India Vs. Hindustan Zinc Ltd. - 2014 (303) E.L.T.T. 321 (S.C.) * Mangalore Chemical & Fertilizers Ltd vs. CCE, - 2009 (248) ELT 647(Tri-Bang); * Clough Engineering Ltd. Vs. Commissioner of Customs (Import), Mumbai - 2006 (198) E.L.T. 457 (Tri. Mumbai); iv) In the instant case, the Appellant has used the scrap in the basic oxygen furnace as a coolant in the manufacture of liquid steel from hot metal. The liquid steel so obtained is further refined in the electric arc furnace. Steel scrap is used for charging in the electric arc furnace also. In any case, liquid steel obtained from the basic oxygen furna....
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....o brought to our notice that the liquid steel arising out of basic oxygen furnace is transferred into electric arc furnace for further refinement. 13. Learned DR supported the impugned orders. He further submitted that in terms of notification, only scrap which is for use in the electric arc furnace will be entitled to the benefit of concessional customs duty. The lower authorities have recorded findings that the appellant has used the imported scrap only in the basic oxygen furnace, that too only for the purpose of cooling molten metal. Further, the lower authorities have rejected the claim for benefit of notification for the reason that the scrap has not been used in the electric arc furnace. 14. Heard both sides and perused the records....
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....as Commissioner (Appeals) for denying the benefit of notification and refusal to issue 'End Use Certificate' is that imported melting scrap has been charged into the basic oxygen furnace, that too as a coolant. Since the appellant has not used the imported melting scrap in the electric arc furnace, the lower authorities have held that the benefit of Customs Notification will not be available to them. 16. The learned Counsel for the appellants has submitted the flow chart which is claimed to reflect the process of steel making in the appellants factory. According to flow chart as well as the submissions made, a part of the imported melting scrap is charged into the basic oxygen furnace. The rest of melting scrap along with other mat....
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.... The Customs Notification No.20/99 extends the benefit of concessional duty for melting scrap for use in electric arc furnace. We find, after considering the process flow chart, that significant portion of the scrap is directly loaded into the electric arc furnace. As far as this portion of the scrap is concerned, we find no reason for denying the benefit of Customs Notification. Coming to the portion of the scrap loaded into the basic Oxygen furnace, such scrap has also found its way, after processing therein, to the electric arc furnace. Hence, it cannot be said that this portion of the scrap too is not being used in the electric arc furnace for making steel. In respect of the portion of the scrap directly charged into electric arc furna....