TaxTMI 
TaxTMI 
2023 (9) TMI 1392
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.... self-assessment, the assessing officer had sought for further information regarding value and nature of the imported goods and the same was submitted by the appellants. As the department did not agree with the self-assessment made by the appellants in respect of classification of imported goods, a show cause notice dated 02.07.2018 was issued and upon receiving their reply dated 17.09.2018 and after giving the appellants a personal hearing, the original authority had passed an order rejecting the classification under tariff item 4002 19 90 claimed by the appellants and reclassified the goods under Customs tariff item 4004 0000. Further, the original authority vide Order-in-Original dated 09.11.2018 confiscated the imported goods in view of the failure on the part of the appellants to produce an authorisation from DGFT as they did not comply with the Foreign Trade Policy 2015-2020; however, an option to redeem the said goods for re-export purpose on payment of redemption fine of Rs.70,000/- was given and penalty of Rs.1,00,000/- was also imposed on the importer under Section 112 of the Customs Act, 1962. 2.2 Feeling aggrieved of the above order, the appellants had preferred an a....
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....porter M/s Royal Carbon Black Pvt. Ltd. in 72nd Expert Committee meeting held on 19-20 September, 2016, had decided that rubber crumb/granules are made by processing of used tyre scrap and are thus products made from waste rubber, and these have not been considered as 'waste' under Schedule III of the HW Rules, 2016. Earlier also the Committee had taken this view and stated that import of this material does not need permission from this Ministry. Thus, the learned Advocate claimed that the whole basis of the impugned order categorising the imported goods as 'restricted goods' for absolutely confiscating the same is arising from incorrect understanding of the issue and thus prayed for setting aside the impugned order. 4. Learned Authorised Representative appearing for the Revenue reiterated the findings of the impugned order and stated that since there is mis-classification and mis-declaration of the imported goods, and in the absence of authorisation from DGFT, the imported goods are liable for absolute confiscation and imposition of penalty. Hence, he stated that the impugned order is sustainable and the appeal is liable to be rejected. 5. Heard both sides and perused the re....
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....reference: Product Description and Import Policy HS Code Description Import Policy Policy Condition Notification No. and Date 4001 Natural rubber, balata, guttapercha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip. 400110 - Natural rubber latex, whether or not prevulcanised ... ... ... ... ... 4002 Synthetic rubber and factice derived from oils, in primary forms or in plates, sheets or strip; mixtures of any product of heading 40.01 with any product of this heading, in primary forms or in plates, sheets or strip. ... ... ... ... ... 400219 - Styrene-butadiene rubber (SBR); carboxylated styrene- butadiene rubber (XSBR) : -- Other 40021910 --- Oil extended styrene butadiene rubber Free 40021920 ---Styrene butadiene rubber with styrene content exceeding 50percent Free 40021930 ---Styrene butadiene styrene oil bound copolymer Free 40021990 ---Other Free &nbs....
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....or mixture of rubbers which has been compounded, before or after coagulation with: (i) vulcanising agents, accelerators, retarders or activators (other than those added for the preparation of pre-vulcanised rubber latex) (ii) pigments or other colouring matter, other than those added solely for the purpose of identification; (iii) plasticisers or extenders (except mineral oil in the case of oilextended rubber), fillers, reinforcing agents, organic solvents or any other substances, except those permitted under (B);...... Further, in the impugned order it had been elaborately discussed about the production process of imported goods at paragraph 13 to 15, to state that the Coloured Rubber Granules having size of 2mm to 4mm are derived from used truck tyres, by subjecting to various processes explained therein as the truck tyres are cut, ground, shredded; steel and fibre are extracted; after de-vulcanization, carbon black oxide, calcium carbonate curing agent and synthetic rubber are mixed; after thermal process, curing etc. pigment and PH binders are added to make the colourful granules. Further, the imported goods are not just a mixture of Styrene Butadi....
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....waste, parings and scrap" is defined in Note 6 to this Chapter. The heading covers: (1) Rubber waste, parings and scrap from the manufacture or working of unvulcanised or vulcanised rubber (other than hard rubber). (2) Goods of rubber (other than hard rubber) definitely not usable as such because of cutting-up, wear or other reasons. This category includes worn-out rubber tyres not suitable for retreading and scrap obtained from such worn-out rubber tyres, usually by the following processes: (a) Cutting the tyre, with a special machine, as close as possible to the tringle bead wires or the heel. (b) Splitting to remove the tread. (c) Cutting into pieces. The heading excludes used tyres suitable for retreading (heading 40.12). (3) Powders and granules obtained from goods of (1) and (2) above. These consist of ground waste of vulcanised rubber. They may be used as a filler in road surfacing materials or in other rubber based compounds or for moulding directly into articles not requiring great strength. The heading also excludes waste, parings, scrap, powders and granules of hard rubber ....
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....ple words, Reclaiming is a procedure in which the scrap rubber is converted, using mechanical and thermal energy and chemicals, into a state in which it can be mixed, processed and vulcanized again. Though technically reclaimed rubber and recycled rubber may be used in different context, to put it simply, recycled rubber is something that is put to use in an entirely different way, whilst reclaimed rubber refers to something that is either reused in its same form for either a new purpose or exactly what it was originally intended for. In terms of Chapter Note 3 to Chapter 40, primary forms applies only to specific forms of rubber and this includes 'granules'. The extract of the said Note is below: "3. In headings 4001 to 4003 and 4005, the expression "primary forms" applies only to the following forms: (a) Liquids and pastes (including latex, whether or not prevulcanised, and other dispersions and solutions); (b) Blocks of irregular shape, lumps, bales, powders, granules, crumbs and similar bulk forms." The imported goods is presented in granules of size 2mm to 4mm which is one of the primary form and are being used for outdoor rubber tiles, indoor rub....
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....to the Ministry of Environment, Forest and Climate Change for the proposed import together with the prior informed consent of the exporting country in respect of Part A of Schedule III waste, and shall send a copy of the application, simultaneously, to the concerned State Pollution Control Board for information and the acknowledgement in this respect from the concerned State Pollution Control Board shall be submitted to the Ministry of Environment, Forest and Climate Change along with the application. (2) For the import of other wastes listed in Part D of Schedule III, the importer shall not require the permission of the Ministry of Environment, Forest and Climate Change. However, the importer shall furnish the required information as per Form 6 to the Customs authorities, accompanied with the following documents in addition to those listed in Schedule VIII, wherever applicable. For used electrical and electronic assemblies listed at serial numbers 4 (e) to 4(i) of Schedule VIII (Basel No. B1110), there is no specific requirement of documentation under these rules: (a) the import license from Directorate General of Foreign Trade, if applicable; (b) the valid consents under....