TaxTMI 
TaxTMI 
2005 (12) TMI 182
X X X X Extracts X X X X
X X X X Extracts X X X X
....eading 7204.43 and claimed the benefit of reduced rate of customs duty under Notification No. 21/2002 Sl. No. 190B. However, the department held that the item should be assessed as "ribbed rusted rods - seconds" falling under Heading 72.14. The concessional rate of duty is 5% basic + 16% CVD + 2% Central Excise cess. The goods were subjected to check examination. The Docks Officers had reported that the goods are not re-rollable scrap and can be considered as a ribbed rusted rods - seconds. Samples were drawn in the presence of the representatives of the importer, CHA and were sent to National Metallurgical Laboratory. In their report dated 9-5-205 it was stated that "Based on visual inspection the consignment can be considered as seconds a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d. Counsel urged the following points :- (i) The original authority has totally ignored the fact that the rusted and pitted rods are bent and measured less than 2 metres length. Thus imported cargo cannot be treated as rods nor they can be used so. (ii) The ribbed steel rods are used only in the construction industry and the minimum length required is 36 feet. It is well-known fact that in the construction industry, the height of the building is minimum 12 ft. per floor and different length of the rods if used in the construction, should be welded as per ISI specification 9417:1989. Thus the imported scrap, which is hardly six feet length, cannot be used in the construction i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....This aspect has been considered by the Tribunal in the case of Ace Kargoways Pvt. Ltd. [2003 (158) E.L.T. 505 (Tri.-Chenn.) deals with identical goods. (vi) No credence can be attached to the opinion of the National Metallurgical Laboratory whose opinion is evasive in nature without giving a categorical opinion as to whether the impugned goods can be classified as re-rollable scrap or not. (vii) It has been held in the following cases in similar circumstances the goods were classified only as scrap. (a) Sujana Steels Ltd. [2000 (115) E.L.T. 539] (b) Patiala Castings P. Ltd. [2003 (156) E.L.T. 458 (P&H)] followed by Tribunal in 2004 (178) E.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he records of the case carefully. The appellants have contended that the length of the items imported is less than 2 metres and hence they would not be suitable for building construction. They had also obtained a letter from a leading Construction Company. The adjudicating authority has ignored this opinion of the Construction Company on the ground that they are not experts. The decision has been taken on the opinion of the NML. However, ld. Counsel drew out attention to the condition No. 28 in SI. No. 201 of the Notification No. 21/02 to say the same was already mentioned in the submissions made by the ld. Counsel. If that definition is taken into account the imported item can be considered as re-rollable scrap. The appellants undertake to....