2020 (2) TMI 766

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....ssable value of Rs. 17,42,202.17. They classified the goods under CTH 72044900 of the Customs Tariff Act, 1975 claiming nil rate of basic customs duty. During the course of examination of the said goods it was found that the said imported cargo contained 58.280 Metric Tons "HR Side Cut Trimmings" mixed with 67.805 Metric Tons of LMS Bundles and Heavy Melting Scrap. 2. The case of the department is that as per Customs Tariff, "HR Side Cut Trimmings" are classifiable under CTH 72044100 which specifically applies to "Trimmings, Savings, Clips, Milling Waste, Saw Dust, Filing, Trimmings and Stampings whether or not in Bundles". The goods falling under the said CTH 72044100 are chargeable to BCD @ 5%. On the other hand HMS falling under Custo....

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....gned order. He submits that "HR Side cutting" is clearly covered under CTH 72044100 and leviable to Basic Custom Duty @ 5%. Therefore, the appellant have clearly mis-declared the goods under 72044900 with intention to evade Custom Duty. Therefore the goods were rightly confiscated. He relied upon the following Judgments. • 2018 (363) ELT 708 (Tri-Chan) - C G Steel Rolling Mills Vs. CCE, Ludhiana • 2009 (242) ELT 227 (Tri-Del) - Natwar Steel P Ltd Vs. CC, New Delhi • 2002 (144) ELT 574 (Tri-Mum)- CC, Mumbai Vs. Multimetal Ltd • 2003 (151) ELT A309- Multimetals Ltd Vs. Commissioner • 2005 (188) ELT 510 (Tri-Chennai)- Ashok Megnetics Ltd Vs. CC, Chennai • 2009 (235) ....

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....ture of the goods there is no doubt that even though it is in the nature of "HR Side Cutting" but the same has no other use except for melting and all the melting scrap is covered under exemption notification No. 21/2002-CUS under serial No. 200. It is not the case of the department that the goods so imported is not scrap but classifiable as HR Coil or Sheet. The revenue also accepted that the goods is steel scrap, if that be so the goods i.e. "HR site cutting" is admittedly scrap and falling under custom chapter heading No. 7204 and is not liable to duty in terms of the notification (Supra). Since, the goods are exempted there is no implication of valuation. In these circumstances, it cannot be said that the appellant has mis-declared the ....