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2005 (12) TMI 182 - AT - CustomsConfiscation of the goods - Re-rollable steel scrap - recovery of the duty and penalty - benefit of reduced rate of customs duty under Notification No. 21/2002 Sl. No. 190B - Whether the goods can be considered as re- rollable scrap or not - HELD THAT:- 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 use the materials under the provision of the Central Excise, if necessary. In these circumstances, as the appellants intends to use the material for re-rolling and in the light of the condition No. 28 the goods merits classification as re-rollable scrap. The report of the NML does not appear to be very categorical. The opinion of the Construction Company cannot be ignored also. The appellants further placed reliance on the IS 2549:1994 regarding classification of the Ferrous scrap and acts with the impugned goods would fit in with the definition given therein. In the circumstances, we uphold the classification claimed by the appellants. There is also no justification for altering enhancing the transaction value without following the Customs (Valuation) Rules, 1988. In the circumstances we hold that the goods are entitled for the benefit of the exemption Notification claimed. They are not liable for confiscation. The transaction value has to be accepted. Therefore, we set aside the impugned order with consequential relief, if any. The appeal is allowed.
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