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2011 (5) TMI 796 - AT - CustomsEnhancement of value - clearance of Heavy Melting Scrap claiming classification under CTH 7204.4900 with Nil Basic plus 10% CVD. The unit value of the product was declared at US 370/- per MT. The Customs authorities on examination, found that the goods were old and used ship chains made of mild steel. Accordingly they revised classification under CTH 7315.20 as ship chains and also enhanced the value for assessment purposes from US 370 to US 480 per MT - Held that - these goods have to be treated as waste and scrap only, old, used and worn out ship chains merit classification as waste and scrap under Heading No. 72.04 of the Customs Tariff, reject the claim of the department to enhance the value from US 370 to US 480 per MT, goods should be assessed to duty at the value claimed by the appellant, which is US 370 per MT, appeal allowed Patiala Castings Pvt. Ltd.(2002 - TMI - 46635 - HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH)
Issues: Classification of imported goods as heavy melting scrap or ship chains, Valuation of imported goods, Evidence required to establish classification, Applicability of relevant legal provisions
Classification of imported goods as heavy melting scrap or ship chains: The case involved a dispute regarding the classification of imported goods declared as "Heavy Melting Scrap" under CTH 7204.4900 by the appellant, but Customs authorities reclassified them as "ship chains" under CTH 7315.20. The appellant argued that the goods were indeed heavy melting scrap based on submitted documents, while the department contended that the goods were usable ship chains falling under CTH 7315. The Tribunal noted that the goods were old and used ship chains, supported by inspection certificates, and concluded that they should be classified as waste and scrap under CTH 7204, in line with previous judgments on similar cases. The appellant's evidence and documents were deemed sufficient to establish the classification as heavy melting scrap, rejecting the department's arguments. Valuation of imported goods: The Customs authorities had enhanced the value of the imported goods from US $370 to US $480 per metric ton based on the presumption that new chains would cost US $600 per metric ton. However, the Tribunal found no rationale for this proposition and rejected the claim to enhance the value. The goods were ordered to be assessed at the originally claimed value of US $370 per metric ton. Evidence required to establish classification: The department argued that the appellant failed to prove that the goods were not usable ship chains falling under CTH 7315. The Tribunal emphasized that the appellant's evidence, including inspection certificates and other documents, sufficiently demonstrated that the goods were old, used, and worn-out ship chains, qualifying as waste and scrap under CTH 7204. The department did not discharge its responsibility to prove otherwise, leading to the Tribunal's decision in favor of the appellant. Applicability of relevant legal provisions: The Tribunal referenced legal definitions of waste and scrap, emphasizing that the goods in question, being old and used ship chains, met the criteria for classification as waste and scrap under CTH 7204. The judgment relied on previous case law and legal interpretations to support the classification of the goods as heavy melting scrap, reinforcing the appellant's position in the case. This detailed analysis of the judgment provides insights into the classification, valuation, evidence requirements, and legal provisions relevant to the dispute resolved by the Appellate Tribunal CESTAT, Mumbai.
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