TMI Blog1991 (9) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... ods to be in the form of brown coloured powdery material, essentially containing Brass Powder, Metallic Compound Silicious matter. The Customs House took the view that the goods were other than brass ash, and appeared to have characteristics of brass powder in the form of brass waste assessable to duty under Heading 7404.00 CTA, 1975 as brass waste as against original assessment as brass ash under Heading 2620.90 CTA. A demand notice under Section 28(1) of the Customs Act for duty of Rs. 1,40,688.70 was issued to the respondents on 18-12-1986. The Assistant Collector held by his order dated 11-1-1989 that Brass Powder (BP) appearing in the test report did not mean brass ash since it is not essentially metal oxides. He observed that brass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ff Act, 1975 is ruled out. The learned Jt. Chief Departmental Representative further contended that the Collector (Appeals) has set aside the Assistant Collector s order only on the ground of the presence of a small percentage of Silicious matter which according to the Department is not sufficient justification for setting aside the demand in the face of unambiguous report on testing of the samples saying that the goods are other than brass ash. Shri N. Ramanathan, the learned Consultant appearing for the respondents contended that the goods have been released after due inspection in the docks by the Asstt. Collector and the consignment was also examined by the Appraiser, in the presence of Asstt. Collector (Docks). The Officer of Special I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by both the sides have been carefully considered. The records show that the goods were subjected to test. One of the contentions of the respondents is that the full text of the report has not been given to them. A copy of the test report was communicated to the respondents by the Appraiser in his No. S-43-785/1/86A dated 25-7-1986 (S-41-259/86A). This communication does not contain the full text of the report. The two sentences, It is other than brass ash Remnant Returned , appearing in the original test memo are not reproduced. Therefore, there is substance in the contention of the respondents that they were not given adequate opportunity to put forth their case with reference to the test report of the goods imported by them. The Col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions concerning waste and scrap in the Heading 72.04 will apply, mutatis mutandis to this heading except that ash and cuprous residues fall in Heading 26.20. It also says that copper waste of this heading includes drawing sludge, derived from the drawing of copper and consisting mainly of copper powder mixed with the lubricants used for the drawing process. Under Heading 72.04 it has been indicated as follows : The heading covers the waste and scrap of iron or steel, as defined in Note 6(a) to Section XV (which is identical with the one of the Customs Tariff). Such waste and scrap of iron or steel is of a miscellaneous nature and generally takes the form of: (1) Waste and scrap from the manufacture of mechanical working of iron ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ross, scalings or other waste from the manufacture of iron or steel, even if suitable for the recovery of the metal (Heading 26.19). (b) Waste and scrap not usable directly in the iron or steel industry, since it is radioactive (Heading 72.01). The HSN Explanatory Notes, as above, give a broad indication of the nature of scrap which is covered under Chapter 74. The wording of Section Note 6(a) to Section XV in the HSN as well as in the Customs Tariff Act on waste and scrap is identical. Therefore, indication in the HSN for the classification of scrap can be regarded as a useful guide. As per this Note copper waste under Heading 7404 includes drawing sludge, derived from the drawing of copper and consisting mainly of copper powder mixed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
