TMI Blog2007 (2) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... horities subjected the goods to examination and obtained the opinion of Chartered Engineer Shri J.S. Oberoi. His opinion dated 29-1-02 read as under :- "As requested by Customs Deptt. CFS (OWPL), Ludhiana, I visited the Import Section for inspection of Sheet Metal Rest, imported from Kaliweit, Germany by M/s. Quick Car Wash Pvt. Ltd. Jalandhar vide Invoice No. 59379 dated 19-11-01. After due inspection of the cargo along with Customs officials in the presence of party's representative, I have the following observation to certify: The material received is inform of sheets, mixture of Hot/Cold rolled and of varying length, width and thickness. The material is secondary/defective and approx. 50% of this is rusty. Material seems to be r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Goods confiscated but allowed to be redeemed on payment of RE of Rs. 48,000/- and Personal Penalty of Rs. 25,000/- 1312 dt. 18-1-2002 Goods confiscated but allowed to be redeemed on payment of RE of Rs. 72,000/- and Personal Penalty of Rs. 35,000/- 4. In addition to confiscating the goods, the order also enhanced the value of the goods for the purpose of assessment. Goods were also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any evidence to counter the opinion given by Chartered Engineer, Shri J.S. Oberoi. So the impugned goods have been correctly classified as hot rolled/cold rolled sheets as per the opinion given by Shri J.S. Oberoi. Accordingly, enhancement in assess able value is also justified as the goods were not of the description given by the appellant i.e. steel metal rest but were actually hot/cold rolled sheets." 1 5. The contention of the appellant in the present appeal is that the goods were ferrous waste and should have been assessed as such, that too on the basis of transaction value. The learned Counsel for the appellant has contended that there is no evidence on record to establish the identity of the goods as hot rolling and cold rollin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... required by the users: (a) Shearing or flame-cutting of heavy and long pieces. (b) Compression into bales, particularly in the case of light scrap, using for example a hydraulic press. (c) Fragmentation (shredding) of motor vehicle bodies and other light scrap, followed by separation (which may be magnetic) with a view to obtaining a high density product that is fairly clean. (d) Crushing and agglomeration into briquettes of iron and steel filings and turnings. (e) Breaking up of old iron articles. Waste and scrap is generally used for the recovery of metal by remelting or for the manufacture of chemicals. But the Heading excludes articles which, with or without repair or renovation, can be re-used for their former purposes o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the consignments could be sold as ferrous products or used as such. it is difficult to plead that rusted iron is capable of use as iron sheets, particularly when the consignment has been found by the expert to be of 50% rusted. 9. in the above view of the matter, we are of the opinion that the classification claimed by the appellant was the correct classification. 10. The valuation done by the Customs authorities rejected the transaction value because of the finding that the goods are ferrous products and not waste. Since, we are of the opinion that the goods are actually waste, the valuation adopted on the basis that the goods are ferrous products cannot be upheld. There was no justification for rejecting valuation based on tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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