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2024 (1) TMI 258 - CESTAT CHENNAIExemption from Basic Customs Duty (BCD) in terms of Sl. No. 190C of Notification No. 21/2002-Cus. dated 01.03.2002, as claimed - deformed Steel Bars Grade HRB 500 (TMT Bars) - whether the impugned goods were alloy steels or non-alloy steels and prime or secondary? - HELD THAT:- This is a case where apparently the demand has been raised by the Revenue by re-classifying the TMT bars under CTH 72279090, which action is not at all supported by any evidence. Thus, the very demand appears to be only on assumptions and presumptions of the adjudicating authority. From the test reports placed in the appeal paper book from page 28 onwards reveal that 15 samples of 20mm TMT bar were tested and 14 samples of 25mm TMT bar were tested by NML; the percentage of silicon content of 20mm TMT bar was between 0.37 and 0.62 and in respect of 25mm TMT bar, the same was between 0.57 and 0.66. The average would be 0.58% in respect of the 20mm TMT bar. The Commissioner (Appeals), however, in the impugned order, has held that the average silicon content was more than 0.6%, which is also baseless and it only shows the non-application of mind. Having referred for test analysis, his observation that “the application of Indian Standards guidelines would not be correct” is a misnomer, especially when he is not an expert himself. Chapter 72 prescribes the percentage of each element/constituent in respect of non / other alloy steel and it is not the case of the Revenue that in respect of the 20mm, 25mm and 32mm TMT bars, the percentage of these elements is more than the prescribed limit. The Revenue is not justified in denying the benefit of Notification No. 21/2002-Cus. dated 01.03.2002 (Sl. No. 190C) and the consequential demand in respect of the 32mm TMT bars cannot sustain. The impugned order deserves to be set aside in toto, which is done - appeal allowed.
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