TaxTMI 
TaxTMI 
2017 (8) TMI 985
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....-bond Bill of Entry dated 12.10.2000 through their CHA for the clearance of non-alloy steel Re-melting Ingots of South African Origin. Appellants claimed the concessional Customs duty benefit @ 5% under Tariff sub-heading 7204 under Sl.No.158 under Notification No.16/2000-Cus dated 01.03.2000. Department was of the view that the concession would be admissible only to melting scrap of Iron or Steel and not to re-melting Ingots. A Show Cause Notice was issued proposing to deny the benefit of notification and demanding differential duty of Rs. 24,45,580/- along with interest. After due process of law, the original authority confirmed the duty demand along with interest. Aggrieved, the appellant filed appeal before the Commissioner (Appeals) wh....
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....scrap ingots are different from regular ingots and they are roughly cast as ingots without the regular features and with obvious surface faults and improper chemical composition. In other words, such re-melting scrap ingots are nothing but defective/rejected/scrap ingots, which are meant for re-melting. In the instant case, appellants have imported such ingots for re-melting purpose only and they have also produced end use certificate to clearly prove that such ingots imported in question have been used by them for melting only and not otherwise. iii) The above notification describes the goods as "Melting Scrap of Iron or Steel" falling under heading 7204. Accordingly, all goods which are scrap of iron or steel and which are intend....
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.... in Note 8 (a) to Section XV and explanatory notes to the Harmonized System of Nomenclature to interpret that the process of conversion into scrap ingots is not covered within the processes mentioned in the said definition. In this regard, the appellant wishes to submit that from the definition of 'waste and scrap' contained in the above said Section Note, it is amply clear that apart from the metal 'waste and scrap' from the manufacture or mechanical working of metals, even metal goods which are definitely not usable as such because of breakage, cutting up, wear or other reasons are also covered within the definition. In the instant case also, the re-meting ingots imported by the appellant cannot be used as ingots and it ca....
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.... defines waste and scrap as under:- "Metal waste and scrap from the manufacture of mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting up, wear or other reasons". Re-melting scrap ingots are obtained from melting of variety of scrap materials and having already undergone process of melting is different from melting scrap. He referred to Customs Tariff Heading 7204 and argued that ferrons waste and scrap would fall under different headings from 7204.10 to 7204.49 and re-melting scrap ingots would come under 7204.50. On the basis of the definition of waste and scrap in Section Notes to Sl.No. 8(a) as above, there are six categories of waste and scrap in Headings 7204.10 to 7204.49. Th....
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....the purpose specified and in the event of his failure to comply with this condition, he shall be liable to pay, in respect of such quantity of the said goods as is not proved to have been so used, an amount equal to the difference between the duty leviable on such quantity but for the exemption under this notification and that already paid at the time of importation; and (b) the importer produces to the said Deputy Commissioner or Assistant Commissioner, as the case may be, within six months or such extended period, as that Deputy Commissioner or Assistant Commissioner may allow, a certificate issued by the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, in whose juri....