TMI Blog2019 (8) TMI 391X X X X Extracts X X X X X X X X Extracts X X X X ..... oice or Mill Test Certificate. Revenue has also relied on the Ministry of Steel Guidelines. The guidelines of Ministry of Steel prescribe that in respect of coil roll (coated, non-coated, electrical) sheet/ strip/ coil, CR Sheets, including electrical sheet and all qualities of coated sheet (galvanized and electro galvanized, aluminized, tin plated, chrome-plated, pre-painted and lead-coated) in mixed non-homogeneous bundles with a unit weight of less than three tonnes, or in coils or less than three tonnes prescribe following as product of non-standard dimensions - We find that the above guidelines are at variance with the standing order. While the SO recognizes mixed lot at prime quality. These guidelines describe them as Non Standard product. Even these guidelines do not describe these as Seconds and defective . Appeal allowed. - Customs Appeal No. 13559 of 2014-DB - A/11470/2019 - Dated:- 5-8-2019 - MR. RAMESH NAIR, MEMBER (JUDICIAL) And MR. RAJU, MEMBER (TECHNICAL) Shri. O.P. Agarwal (C.A.) for the Appellant Smt. Nitina Nagori, Authorized representative for the Respondent ORDER RAJU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption in respect of 1424.560 MT of SS Coils imported vide 14 BOR in the past, with interest and penalty but without confiscation as goods were not available, on the grounds (Page No. 186 of appeal Para 14) that net weight of each coil was less than 3 MT- Annexure B-2 SCN at Page No. 55 of appeal. 2.1 Ld. Counsel argued that the differences between prime quality and second/ defective is that the prime quality are without any manufacturing defects while the second/ defective goods are produced of non-standard dimensions or are downgraded products like products having some defects. He argued that in their case there are no defects and the goods are not of non-standard dimensions. The goods were of homogenous quality with proper levels of manufacturers showing the quality and dimensions of the manufacturer. He pointed out that it has been alleged that since the weight of each coil is less then 3MT they are not of prime quality. He pointed out that even in the appellants case invoice and packing list are available to verify the claim of the quality of the product. The appellant have also submitted MTC in respect of each consignments. He pointed out that even as per exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at MTC given is not coil wise, a general MTC. The stand of the Revenue is largely based on Standing Order No. 62/2009 issued by Jawahar Lal Nehru Customs House, Nhava Sheva. In the said Standing Order following has been prescribed. Instances of mis-declaration of description have been noticed in the recent past in respect of steel and stainless steel flat products (sheets/strips/coils/plates etc.) wherein either prime goods are being mis-described as non-prime or non-prime as prime . Although the volume of imports of non-prime steel and stainless steel flat products is quite high through this Port, but it is noticed that there were no specific guidelines/instructions on identification, examination and assessment of non-prime steel and stainless flat products so as to have a check on the mis-declaration. Further, it is seen that various terminologies , for prime/non-prime goods, are used by steel trade and industry or declared by the importers in the Bills of Entry and the same can be broadly grouped as:- Sr. No. Category Terminology/description ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visible scratches , rust spots , scabs , scruff beads , bran, dirt and excessive oil , dents , bents , pinholes , fold edges , bent corners , mill grease , streaks , lamination and sand spots , scruff beads , transit rub marks , indentation , blisters , oil patches etc. The importers are required to declare or specify, for the examination and assessment purpose on the Bill of Entry, the non-prime nature of the goods as seconds or defective goods. The main types of surface defects are briefly described as under: 1. Blister . 2. Split ends/ lamination .. 3. Scabs . 4. Craks 5. Waviness/ buckling 6. Notched edge/cracked edge/ edge burrs .. 7. Spoilt edge 8. Seams 9. Vocalization/ Ovality 10. Beading 11. Straightness and profile . 12. Annealing halo .. 13. Rust . 4.1 It is seen that the objections raised by the Revenue are not supported by the Standing Order. In the instant case, the MTC has been produced. There is no requir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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