TMI Blog2022 (5) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... othing but mill waste and does not serve the purpose for which they are meant. The thickness is between 0.30 mm to 4 mm which is a non-uniform thickness likewise the width is from 900 mm to 1400 mm. Accordingly, weight ranges from 200- 800 kgs and length are 15 to 20 meters. The goods in question are having a thickness between 0.30 mm to 4 mm, width is from 900 mm to 1400 mm with weight ranging from 200-800 kgs and lengths between 15 to 20 meters has rightly been categorized as flat-rolled products not waste and scrap. As per item No.7204, Ferrous waste and scrap; remelting scrap ingots of iron or steel and the appellant is claiming under the item No.7204 49 00 i.e. other because same is not falling in any of the items from 7204 10 00 to 7204 50 00 - As per the appellant, the goods in question are not used for recovery of metal by re-melting by way of repair, renovating or re-rolling these goods can be adapted for other use, hence, it is not wholly metal waste and scrap and is not liable to be classified under subheading 7204. Even otherwise the appellant is an importer and does not intend to use the product for himself, the appellant will sell the product after import to variou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 017 as amended vide notification No.02/2021-Customs dated 01.02.2021. [3] In terms of 13 of CAAR, the Customs Authority for Advance Rulings vide letter dated 18.06.2021 appointed respondent No.2 as Jurisdictional Commissioner for providing relevant records/comments on the application filed by the appellant. Respondent No.2 vide letter dated 07.07.2021 approved the classification of the goods in question in support of the appellant. The appellant was given an opportunity for a personal hearing on 05.08.2021 by respondent No.1, thereafter, sought certain clarification vide email dated 10.08.2021, to which the appellant replied vide email dated 17.08.2021. Respondent No.1 vide impugned order dated 27.08.2021 has held that the goods in question cannot be classified as waste and scrap as the same is classifiable under Tariff Item 7209 90 00 assigning reasons: [i] The definitions of '' hot rolling'' and '' cold rolling'' were noted and it was also observed that ''hot rolling'' and '' cold rolling'' are mechanical processes used in the production of flat-rolled products. The goods in question intended to be imported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned from the mechanical working of metals. The Hot rolled coil is made to pass between two reels and the hydraulic force is gradually applied is initially low and is elevated to the desired level. While the intensity of the hydraulic force applied is low, uneven gauges i.e. thickness, width and elongations are created on the coil. The length of the coil with uneven gauges is cut at both ends and disposed of as scrap. These cut-ends from the main roll are not treated as a finished product, instead, they are generally an unavoidable by-product of the cold rolling process. It is further submitted that during the cold rolling process certain significant characteristics of the goods in question are (i)non-uniform gauges at indefinite intervals in the same coil. (ii) weight of the coils ranges from 200-800 Kgs. (iii) length of the product varies from 15 to 20 meters. The goods in question generated during this process of cold rolling cannot be used as prime cold roll products. Hence, they are being sold as a waste product. It is further submitted that a hot - rolled coil is wound onto an entry reel and allowed to pass between 4 HI or 6HI steel rolls in single stand cold rolling to achie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-melting with repair, renovation or re-rolling these goods can be adapted for other use, hence same cannot be treated as metal waste and scrap and are not classifiable under item 72.04. It is further submitted that the appellant has declared that the length of the coil will be 10-20 meters but it is difficult to get such a high length of scrap from the crop end (front and back end cuttings) of a coil. Hence, goods in question cannot be classified as remelting scrap attracting NIL rate of duty. The Advance ruling authority had exhaustively dealt with the issue and passed an elaborative order with reasoning and the same is not liable to interfere. It is further submitted by the learned counsel Shri Prasad that now the Office of Commissioner, Customs Indore has issued show-cause notices under Section 28(4) read with 124 of Customs Act to the appellants and other similar importers who are dealing with the import of M.S. Coil Bundle End Cuts were being misclassified under the Customs Tariff Item 72044900 of Customs Tariff Act, 1975 instead of Customs Tariff Item 72099000 and also the imported goods are undervalued to evade customs. Shri P Prasad learned counsel prays for dismissal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m with weight ranging from 200-800 kgs and lengths between 15 to 20 meters has rightly been categorized as flat-rolled products not waste and scrap. As per item No.7204, Ferrous waste and scrap; remelting scrap ingots of iron or steel and the appellant is claiming under the item No.7204 49 00 i.e. other because same is not falling in any of the items from 7204 10 00 to 7204 50 00. Learned Authority has considered the product in question under heading 7209 i.e. Flat- Rolled Products of Iron or Non-Alloy steel, of a width of 600 MM or More, Cold-Rolled (Cold-reduced), Not Clad, plated or coated. In this category, only the width or thickness was mentioned irrespective of the length of the roll. The appellant is intending to import coils having a thickness ranging from 0.30 mm to 4 mm and a width of 900 mm to 1400 mm, these physical parameters satisfied the explanation given in the above chapter is Flat-rolled products. The authority in para 10 has elaborately discussed how the cold-rolled products are manufactured. In general terminology the waste and scrap materials are not liable to be used in the same form, they are treated as waste and scrape unless melted but Flate products are b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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