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M/s. Jaibhavani Steel Enterprises Ltd. Versus CC, Chennai

2017 (8) TMI 985 - CESTAT CHENNAI

Benefit of N/N. 16/2000-Cus dated 01.03.2000 (Sl.No. 158) - Concessional Rate of Duty - The case of the department is that the appellant has imported re-melting Ingots and that these goods falling under 7204.50 is altogether different category of goods - whether the re-melting Ingots classifiable under CTH 7204.50 is eligible for the benefit of concessional rate of duty under N/N. 16/2000-Cus dated 01.03.2000? - Held that: - It is pertinent to mention that the Chapter Heading mentioned in th .....

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, the appellants are eligible for the benefit of concessional rate of duty in terms of the notification. - The appellants have produced end use certificate issued by the concerned Central Excise officer, which supports this contention that they have complied the condition. - Demand set aside - appeal allowed - decided in favor of appellant. - C/283/2009 - 41769/2017 - Dated:- 21-8-2017 - Ms. Sulekha Beevi C.S., Member ( Judicial ) And Shri Madhu Mohan Damodhar, Member ( Technical ) Shri .....

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Appellants claimed the concessional Customs duty benefit @ 5% under Tariff sub-heading 7204 under Sl.No.158 under Notification No.16/2000-Cus dated 01.03.2000. Department was of the view that the concession would be admissible only to melting scrap of Iron or Steel and not to re-melting Ingots. A Show Cause Notice was issued proposing to deny the benefit of notification and demanding differential duty of ₹ 24,45,580/- along with interest. After due process of law, the original authority c .....

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ssued on the appellant demanding the differential duty of ₹ 24,45,580/- on the ground that the concessional rate of duty would apply only to meting scrap of iron and steel and not for re-melting ingots. The appellant has otherwise satisfied the conditions prescribed under the notification No.16/2000-Cus dated 01.03.2000 and had also furnished the end use certificate issued by the jurisdictional Central Excise officer to the effect that the re-melting ingots imported by the appellant under .....

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n, spiegeleisen or ferro-alloys. Accordingly, it is very clear that the re-melting scrap ingots are different from regular ingots and they are roughly cast as ingots without the regular features and with obvious surface faults and improper chemical composition. In other words, such re-melting scrap ingots are nothing but defective/rejected/scrap ingots, which are meant for re-melting. In the instant case, appellants have imported such ingots for re-melting purpose only and they have also produce .....

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ication but scrap of iron or steel are covered under this heading and in addition it also covers re-melting scrap ingots. All scrap of iron or steel covered under the heading are not entitled for the benefit of the notification if they are not intended for the purpose of melting. However, the re-melting scrap ingots classifiable under the heading 7204.50 are entitled for the benefit of the notification straight away as it satisfies both the condition as being "scrap of iron or steel" a .....

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otification is available for the impugned imports in question and the appellant have rightly claimed the exemption, and the impugned order of the Commissioner denying the benefit is not at all sustainable. v) The Commissioner in his impugned order-in-appeal has placed reliance on the definition of "waste and scrap" contained in Note 8 (a) to Section XV and explanatory notes to the Harmonized System of Nomenclature to interpret that the process of conversion into scrap ingots is not cov .....

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lso, the re-meting ingots imported by the appellant cannot be used as ingots and it can only be used for re-melting purpose in view of the quality and specification defects. It is also proved with the help of end use certificate issued by the jurisdictional Central Excise office to the effect that the imported goods in question have been consumed within the factory of the appellant for re-melting purpose only. vi) Similarly, even the explanatory notes contained in HSN it is clear that the articl .....

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rely get covered under the description Melting scrap of iron and steel used in the exemption notification. 4. Against this the Ld. AR reiterated the findings in the impugned order. He submitted that in the invoice the goods were described as non-alloy steel 'melting' ingots whereas in the Bill of Entry the same was described as 're-melting' ingots to suit the classification under Tariff Heading 7204.50. He submitted that 'melting' waste and scrap are of different category .....

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ued that ferrons waste and scrap would fall under different headings from 7204.10 to 7204.49 and re-melting scrap ingots would come under 7204.50. On the basis of the definition of waste and scrap in Section Notes to Sl.No. 8(a) as above, there are six categories of waste and scrap in Headings 7204.10 to 7204.49. These are waste and scrap of cast iron, waste and scrap of alloy, steel, tinned iron, and other waste and scrap. However, the Heading 7204.50 which covers re-melting scrap Ingots, falls .....

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16/2000 (Sl. No. 158) is as follows:- TABLE S. No. Chapter or heading No. or sub- heading No. Description of goods Standard rate Additional duty rate Condition No. (1) (2) (3) (4) (5) (6) 158. 72.04 Melting scrap of iron or steel (other than stainless steel or heat resisting steel), for use in electric arc furnace or induction furnace or melting in a hot blast cupola or for supply to a unit for use in electric arc furnace or induction furnace or melting in a hot blast cupola 5% - 16 The above s .....

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y but for the exemption under this notification and that already paid at the time of importation; and (b) the importer produces to the said Deputy Commissioner or Assistant Commissioner, as the case may be, within six months or such extended period, as that Deputy Commissioner or Assistant Commissioner may allow, a certificate issued by the Deputy Commissioner of Central Excise or the Assistant Commissioner of Central Excise, as the case may be, in whose jurisdiction the said goods have been use .....

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ing scrap ingots. It is not disputed that appellants complied with the condition and produced the required certificate. So also the department does not dispute the classification adopted by the appellant. The case of the department is that the appellant has imported re-melting Ingots and that these goods falling under 7204.50 is altogether different category of goods. 6.2 On perusal of the notification, it is seen that Sl.No. 158 mentions that the Chapter Heading/Sub-heading No. as 72.04. The de .....

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