TaxTMI 
TaxTMI 
2021 (9) TMI 59
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....hot-rolled coil is wound onto the entry reel and allowed to pass between 4HI or 6HI steel rolls for desired thickness. The hydraulic force is gradually applied so that the immediate application of the required force does not break the coil instantly. In such cases, some length of coil remains devoid of desired thickness because of limited application force and is therefore neither a hot-rolled nor a cold-rolled coil, having a non-uniform thickness at indefinite intervals. Such a coil has variable tensile strength and elongation properties. These coils are thus generated at an initial stage, and are cut at ends and wound in coil form, which is nothing but mill waste and do not serve the purpose for which they are meant. These coils thus so obtained, are used by unorganized steel manufacturers to re-roll them to get the desired configuration. The waste so generated have the following characteristics: a) non-uniform gauges at indefinite intervals. b) weight of the coils ranges from 200-800 Kgs, c) length of the coils varies from 15 to 20 meters, d) the product obtained is neither hot-rolled nor cold-rolled as tensile strength and elongation are diff....
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....ls goods wound in coil" falls under Section XV which covers "Base metals and articles of base metals". The description of the particular heading, i.e., 7204 is "Ferrous waste and scrap; remelting scrap ingots of iron or steel". 72044900 is the subheading for "Other waste and scrap". The justification for classifying the product under the said heading is that it is a re-rollable waste and arising out of the process of converting hot-rolled coil into cold-rolled coil. The hot-rolled coil is passed through a hydraulic press to change into desired/reduced thickness by gradually applying hydraulic force until the desired thickness is achieved/ received. Since the force is applied gradually which results in different thicknesses of output at different intervals until the desired thickness is achieved/ received and once the desired thickness is derived the coil length up to that stage is cut down and separated. The remaining cut coil has non-uniform gauges, different lengths, weight, thickness and can't be used as prime material. Unorganized steel sector manufacturers use this uneven coil for sundry items and uniform thickness is achieved by re-rolling it again. Hence, this waste coil is ....
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.... Choksi Laboratories Limited to get technical specifications of the goods to be imported. 7. The applicant was requested to clarify the following vide email dated 10.08.2021. The following reply was received on 17.08.2021:- Q1. What is the composition of the product? Whether it is ferrous, iron, non-alloy steel, stainless steel or any other alloy steel? A: Our product is namely mill processed non-alloy ferrous waste wound in Coil. Q2. Whether imported are goods cold-rolled or hot-rolled? Is any further work carried out on the rolled product? A: The product to be imported by us for which advance ruling is applied is neither a cold-rolled nor a hot-rolled. This waste gets generated in the process of manufacturing of cold-rolled coil from hot-rolled coil. The portion of the coil that does not become a final product because of not being properly rolled (because of non-uniform force) is generated at both ends of the main coil (final product). This portion is being cut/ separated and disposed of as a re-rollable waste as it is. Q3. Whether all the goods imported in the form of the coil? A: Yes, generally re-rollable waste that gets....
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....the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require...". In the HSN classification system, section XV covers the base metals and articles of base metal, and chapter 72 pertains to goods of iron and steel. Chapter note 1(k) of Chapter 72 assigns the following expression to flat-rolled products- "Rolled products of solid rectangular (other than square) cross-section, which do not conform to the definition at (if) above in the form of • coils of successively superimposed layers, or • straight lengths, which if of a thickness less than 4.75 mm are of a width measuring at least ten times the thickness or if of a thickness of 4.75 mm or more are of a width which exceeds 150 mm and measures at least twice the thickness. Flat-rolled products include those with patterns in relief derived directly from rolling (for example, grooves, ribs, chequers, tears, buttons, lozenges) and those which have been perforated, corrugated or polished, provided that they do not thereby assume the character of articles or products of other headings. Flat-rolled products of a shape other than rectangular....
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.... 72.08 to 72.12. The applicant informed that the intended product to be imported is not cladded/plated/coated. Therefore, these cold-rolled products are specifically classifiable under subheading 72.09 "Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold reduced), not clad, plated or coated". 11. The applicant states that as per the lab report the sample goods do not satisfy standards prescribed in BIS 513:2008 (Standards for cold reduced carbon steel sheet and strip). The inspection in the lab was carried out on a single coil provided by the applicant. Chemical and mechanical properties were inspected at starting and ending positions. Physical dimension, namely thickness, was measured at different intervals. The BIS 513:2008 standards cover the requirements of cold reduced low carbon steel sheets and strips for bending and drawing purpose and where the surface is of prime importance. The lab report was compared to BIS 513:2008 standards. It was observed that the sample satisfies prescribed chemical composition standards. The mechanical properties of the sample, tensile stress and yield stress, were within the range as prescribed. Elo....
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....etal by remelting. Further, with repair, renovation or re-rolling these goods can be adapted for other use. Hence impugned goods cannot be treated as metal waste and scrap and are not classifiable under subheading 72.04. Consequently, they are not eligible for benefit of sr.no. 369 of notification no. 02/2021-Customs dated 01.02.2021. 13. IS 2549:1994 (Code for classification of processed ferrous scrap) provides standards for the classification of processed ferrous scrap in the form it occurs in a steel manufacturing plant. Paras 13.1 to 13.3 cover re-rollable steel scrap. The relevant paras are reproduced below. 13.1 Re-rollable steel scrap: It shall consist of seconds and defectives or cuttings/rejected ingots/slabs/blooms/billets, bars, rods, angles, shapes, and sections, rails and railway materials such as wheels, tyres, axles, sleepers, sleeper bars, fish plates and flat-rolled products suitable for re-rolling without undergoing process of melting and length 5000 mm (max), width 800 mm (max), thickness 8 mm (minimum). In case of rails and railway materials there will be no size restriction. 13.2 Re-rollable steel scrap, used and salvaged: It shall co....