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2019 (12) TMI 1349 - AT - CustomsClassification of imported goods - heavy melting scrap HMS - to be classified as serviceable parts or not - eligibility for exemption under N/N. 21/02-Cus - Department opined that the impugned goods were secondary / defective / rejected stock comprising of stainless-steel U and C channels of grade 410 (magnetic) and HR coils / strips of grade 410 (magnetic) - HELD THAT:- The adjudicating authority has not explained as to why various certificates submitted by the appellants were not accepted. It is not known as to why the department has not allowed the request for mutilation of the goods before clearance. Chartered Engineer’s examination was also not ordered. This being the factual milieu, Department cannot reclassify the goods unilaterally on the basis of the examination report of officers alone. Technical opinion given by the pre-inspection certificate and by M/s. Alloys and Metal Test Services, cannot be disregarded. Also the fact that all the shipping documents describe the goods as steel melting scrap only cannot be denied. Under such circumstances, denying the classification and the benefit of exemption are not tenable. For the same reason, the department has not made its case for redetermination of the value of the impugned goods for the purpose of assessment. The declared classification and valuation cannot be rejected only on the basis of examination report of the officers, more so, when technical reports were not in favour of the view taken by the Revenue. Therefore, taking recourse to LME prices is also not acceptable. It is not the case of the department that to value over and above the price declared in the invoice was paid to the overseas supplier. It is also not the case of the department that the said scrap was not utilised as scrap. Therefore, Department has not given forth any evidence to support the allegation. Appeal allowed - decided in favor of appellant.
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