9911796707
TMI Blog2007 (6) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... . The bill of entry described the goods as above. The department got samples of the goods tested at the National Metallurgical Laboratory (NML, for short). The NML report reads thus "based on visual examination and chemical analysis, the material can be considered as non-alloy steel skull scrap suitable for melting. The percentage of recovery of iron from the scrap is about 80% by weight". The report also observed that the skull scrap was found with some amount of slag. Taking this 'slag' content into account, the department alleged mis-declaration of description and mis-classification by the importer and accordingly confiscation of the goods and imposition of penalty were proposed. These proposals were contested. The original authority uph ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d fall under Heading 2619 and sub-heading 2619 00 10. The Heading covers 'slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel'. The entry 2619 00 reads identically. There are two sub divisions under this entry, the first of which covers 'converted slag (scull) of blast furnace'. The remaining sub-heading is residuary ('Other'). 3. Learned counsel has relied on the NML report, which declared the item to be non-alloy steel skull scrap suitable for melting and reported its composition indicating ferrous content of 80% by weight. It is submitted that the presence of a small amount of slag in the scrap would not make the scrap classifiable under Heading 2619. In this connection, learned couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly, learned counsel urges that the item be classified under Heading 72.04 and the impugned order be set aside. 4. Learned SDR, on the other hand, refers to HSN Notes under Headings 72.04 and 26.19. It is submitted that slag or other waste from the manufacture of iron or steel, even if suitable for the recovery of the metal, is covered by the Heading 26.19 and is expressly excluded from the coverage of Heading 72.04. Relying on the HSN Notes under Heading 26.19, learned SDR submits that what can be classified under Heading 72.04 is 'scrap metal produced during cutting, shaping or metal-working processes' and not goods of the nature imported by the appellants. He has also referred to the term 'skull scrap' as used in S.B. Sarkar's WORDS AND ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lag' under Heading 26.19. But the fact is that 'steel skull scrap' of any category can contain slag to varying extents as is seen from "Indian Standards CODE FOR CLASSIFICATION OF PROCESSED FERROUS SCRAP" (first revision) vide IS 2549:1994. In the case of Steel Authority of India Ltd., this Tribunal classified cast iron skull scrap under Heading 72.04 of the CETA Schedule. It is not in dispute that the Central Excise and Customs Tariffs are aligned in respect of classification of goods. We have also taken note of the data supplied by learned counsel today, which is claimed to have been retrieved from National Informatics Data Base (NIDB, for short) of the Directorate of Valuation under the Central Board of Excise and Customs (CBEC). This st ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
