9911796707
TMI Blog2024 (11) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... sal by this common order. 2.1 Brief facts are that, the Appellants (A1&A2) purchased 251.300 MTs of re-rollable scrap each on high sea sales basis and filed the Bills of Entry No. 7043324 dated 13.10.2014 and No. 6903777 dated 27.09.2014 respectively classifying the imported materials under the CTH 7214 1090 as re-rollable scrap. But the Department was of the view that the imported goods are not eligible for the benefit of the exemption Notification No. 12/2012-Cus. dated 17.03.2012 being Defectives and Seconds and finally assessed the said two Bills of Entry denying the exemption benefit of the above Notification supra. The imported scrap was classified under CTH 7214 1090, and there is no dispute as to either classification or valuation of the scrap imported in respect of both the Appeals. For the purpose of assessment, the goods were examined on first check basis. The relevant portion of the examination reports dated 10.10.2024 and 16.10.2014 is as given below separately : - (i) Examination report dated 16.10.2024 in respect of M/. DSRM Steels Pvt. Ltd.: - "For the points raised, the following is submitted: ➢ The importer is a manufacturer and is registered with C. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven below: - Effective rates of basic and additional duty for specified goods falling under Chapters 1 to 98 - Jumbo Notification No. 21/2002-Cus. replaced In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 Published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 118(E) dated the 1st March, 2002, except as respects things done or omitted to be done before such supersession, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table below or column (3) of the said Table read with the relevant List appended hereto, as the case may be, and falling within the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as are specified in the corresponding entry in column (2) of the said Table, when imported into India,- (a) from so much of the duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... System Consulting (P) Ltd. Vs. Commissioner of Customs, Kolkata [2005 (179) ELT 511 (Tri.Del.)], the Appellants have submitted that the imported cargo is only re-rollable scrap and not defectives or seconds. ii. The Department has not put them on notice and not indicated the reason for denying the benefit of the Notification No. 12/2012-Cus. dated 17.03.2012 violating the principles of natural justice. and, iii. The Appellate Authority has not given any reasons for terming the imported cargo as defectives / seconds. 3. The Ld. Advocate Shri M. Karthikeyan has mainly argued that the imported goods to be recognised as seconds and defectives, the cargo should be capable of being used as iron rods itself and it should not be meant for re-rolling. The imported cargo was treated as seconds and defectives merely for the reason that they are cut pieces / unwanted portions of standard length. Relying upon the following decisions, the Ld. Advocate has submitted that the disputed goods were scrap only and could not be defectives / seconds as there was failure on the part of the Department to adduce any evidence: - i. Tata Iron & Steel Co. Ltd. [1994 (12) TMI 73-SUPREME COURT] ii. An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the width varies from 20-50mm and 10-30mm respectively. Because of this, it becomes essential whether the cargo can be used as such to be called as 'Defectives & Seconds'. 9. We find that the importers are the actual users of the scrap imported either for melting or for re-rolling. The imported goods to be called as defectives or seconds should be used and to be sold as such without undergoing the process of melting / heating for the purpose of re-rolling. The examination report is very clear to confirm that imported cargo is only a scrap and they are unwanted and rusted portion of standard length of materials. The benefit of the Notification No. 12/2012-Cus. dated 17.03.2012 at Sl.No. 330 excludes only if the imported goods are seconds or defectives. Ministry of Steel, Government of India has given guidelines for on identification criteria in respect of Non-Prime (Seconds & Defectives) Steel Products as against the prime products. 10. We have considered these guidelines in order to determine whether the imported material can be treated as seconds and defectives. Seconds and defective steel products can be of products of non-standard dimensions or downgraded products. Downgra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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