TMI Blog1986 (10) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 Sr. No. 2 List 8 Part III of AM 85 Policy. The goods were examined under the supervision of S.LI.B. on 4th March, 1985 and reported to contain genuine brass dross. The samples were also forwarded for test to Dy. C.C. as well as for inspection to SUB. On inspections of the samples, the consignments were detained for want of test results. The samples were tested and reported to contain Molten Pieces of Brass. An information was received in the S.I.I.B., that the goods imported by the appellants were not as per the description declared in the Bs/E as well as in other import documents. The case was registered and the matter was taken up for investigation by S.I.I.B. The containers were inspected on 6-5-1985 in the presence of the Assistant Collector/S.I.I.B. Representatives of the importers were also present at the time of inspection. The content of containers were having crucible like shape having holder to each piece at the centre. From the physical examination, it was felt that the goods were not brass dross but they were brass (alloy of copper and zinc) imported in the form of crucible shape. The representative sample was, therefore, called for on 6-5-1985, and the cut sample wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he imported item was brass metal and not brass dross is not correct. He has also referred to Appx. 4 Para (A) item 442 which relates to non ferrous alloys, ingots, castings and forgings other than those elsewhere specified. Shri, Chanderashekaran, the learned advocate stated that it is an undisputed fact that brass is a non ferrous alloy. He stated that the order passed by the adjudicating authority is silent and does not disclose the basis on which the brass dross has been treated as brass metal. Shri Chanderashekaran, the learned advocate has referred to IS : 2066-1962 (Para 13.3) of Indian Standard Coding and Classification for Non-Ferrous Scrap Metals and Residues which describes Brass Dross as heavy dense metallic lumps comprising of free metals. He has referred to the Order-in-Original and has stated that in para (i) of Para 11 the adjudicating authority had given the conclusion that the goods imported are not brass dross but brass (an alloy of copper and zinc) having crucible like shape which do not correspond in respect of declaration of description with the entry made under this Act and are therefore liable to confiscation u/s 111(m) of Customs Act, 1962 and in sub para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Edition page 398 and as per this dictionary dross is Metal oxides in molten metal, resulting from oxidation; material, usually of oxide nature, rising to the surface of impure molten metal . Shri Gopinath has further argued that dross mostly consists of oxides and the dross can be in the form of lump too. He has also referred to the test reports which appear on pages 33 and 34 and as per test report dated 23-3-1983 in respect of B/E No. 396/136 which appears on page 34 of the Paper Book Sample is a yellow lump having oxidised surface at some places. It is composed, of brass - an alloy of copper and zinc. Percentage of copper is 69.4. It may be considered as molten metalic brass. Sealed remanent is returned. In respect of B/E No. 396/137 he has also referred to the chemical test report which appears on page 33 of the Paper Book. The test report reads as Sample is in the form of yellow coloured lumps with surface oxidised at some places. It is composed of an alloy of copper and zinc (brass). It can be considered molten pieces of brass. Copper 60.1%. Shri Gopinath states that the percentage of copper is 69.1%. he has also referred to the appellants letter dated 5th June; 1985 add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scrap; metal alloys 100%. Shri Gopinath states that the rate of duty is 75% + 40% + Countervailing duty at the rate of Rs. 3,300 per metric tone. Shri Gopinath further stated that the difference of duty is assessed as brass metal and not brass dross is at Rs. 45,94,654.48. He has also referred to the meaning of scrap as per Concise Chemical and Technical Dictionary by H. Bennette page 926. Scrap means substance unsuitable for direct use or repair and usable only as a raw substance for reprocessing. Shri Gopinath, the learned Departmental Representative states that the order in the case of Maheshwari Industries, Jamnagar does not help the appellant. He has referred to para number 4 of the said order which appears on page 39 of the Paper Book. Shri Gopinath has taken an alternative plea. He has pleaded that if the respondent s contention that the imported item is brass metal is not accepted, his alternative plea is that the same at worst can be treated as brass scrap. In support of his arguments he has referred of the judgment of the Supreme Court in the case of Khandelwal Metal Engineering Works Another Etc. v. Union of India Others wherein he Hon ble Supreme Court had held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opper and zinc, with small amounts of other optional constituents, such as lead and tin. Red Brass contains about 77-86% copper; may be worked either hot or cold and is weldable by all standard procedures. Yellow Brass ( High Brass ) contains approximately 63-76% copper, has excellent cold-working and fair hotworking properties, and is weldable. Dross : Metal oxides in molten metal, resulting from oxidation; material usually of oxide nature, rising to the surface of impure molten metal. Scrap : Substance unsuitable for direct use of repair and usable only as a raw substance for reprocessing. Extracts of the Chemical Examination Reports dated 23rd March, 1985, 14th March, 1985 and 1st June, 1985 which appear on pages 34, 35 and 36 of the Paper Book are reproduced below:- Test report dated 14-3-1985 in respect of B/E No. 396/137 Sample is in the form of yellow coloured lumps with surface oxidised at some places. It is composed of an alloy of copper and zinc (brass). It can be considered molten pieces of brass. Copper 60.1%. Test report dated 23-3-1985 in respect of B/E No. 396/136 Sample is a yellow lump having oxidised surface at some places. It is composed of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unknowingly without any fault of ours as ours is a clean and spotless record in Customs. We request you to please have the MERCY on us as already there has been heavy demurrages and therefore request for the expeditious adjudication to avoid the further demurrages and losses on the goods. Thanking you in anticipation. Yours faithfully, For P.S.METAL CORPORATION Sd/- PROPRIETOR S/Shri Shanti Lal c Partap Chand in their statements had also accepted that the imported items were Brass Metal and the valuation of the same was also accepted by them at the rate of Rs. 32 to 34/- per Kg. A simple perusal of the Chemical Examiner s Report, Appellant s letter dated 5th June, 1985 addressed to the Assistant Collector and Admission Statement of S/Shri Shanti Lal and Partap Chand fully proves that the item imported is Brass Metal and not Brass Dross. During the course of arguments Shri M. Chanderashekaran, the learned advocate had argued that the contents of the statement of Shri Shanti Lal and Partap Chand cannot be used against them does not help the appellant in any way. There is sufficient documentary evidence on record to this effect which can lead to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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