2014 (5) TMI 363 - AT - Customs

Clearance of goods - Classification of Heavy Melting Scrap - Chapter 72 or 82 of Customs Tariff Act or not Use of defective & rejected rollers - Held that - It is found assessee made import of old and used rollers and declared the same as heavy melting scraps and classified the same under Chapter 72 of Customs Tariff - Clarification was brought from Chartered Engineer to the effect that the rollers in question, used defective & rejected rollers, are part of the Rolling Mill Plant and these rollers can be serviceable to put into use - As per the opinion of the Chartered Engineer, the surface of the rollers are not uniform and rollers cannot be used for the purpose they are meant for and the product cannot be extracted up to the mark - In view of the offer made by learned counsel that goods can be cleared after mutilation, this Court directs that the goods in question be cleared after mutilation under the supervision of the Customs authorities - Also in view of the fact that earlier two consignments imported by the same importer were cleared after due verification, the impugned order is not sustainable and the same is set aside Decided in favour of assesse.

Summary

Issues:
1. Appeal against the impugned order passed by the Commissioner of Customs (Appeals) for classification of imported goods.
2. Contention regarding the classification of goods as Heavy Melting Scrap under Chapter 7204 49 00 versus Rolling Mill Plant under Chapter 8455 30 00.
3. Reliance on Chartered Engineer's opinion and supplier's certificate to support the claim of goods being heavy melting scraps.
4. Comparison with previous consignments cleared after verification.
5. Interpretation of Chartered Engineer's opinion and its impact on the classification of goods.
6. Applicability of the decision of Hon'ble Punjab & Haryana High Court in a similar case.
7. Setting aside the impugned order based on the Chartered Engineer's opinion and previous clearances.
8. Direction for clearance of goods after mutilation.

Analysis:

1. The appeal was filed against the order passed by the Commissioner of Customs (Appeals) regarding the classification of imported goods declared as Heavy Melting Scrap under Chapter 7204 49 00. The goods were inspected, and the Chartered Engineer's opinion was obtained, leading to a dispute with the Revenue claiming the goods to be part of the Rolling Mill Plant under Chapter 8455 30 00.

2. The appellants argued that the goods were indeed heavy melting scraps, supported by the Chartered Engineer's opinion highlighting the defects in the rollers and the supplier's certificate stating the rollers cannot be used without re-melting. They also pointed out the acceptance of previous consignments with the same classification.

3. Revenue contended that the Chartered Engineer's opinion deemed the rollers as serviceable, referring to a previous court decision supporting their claim. However, the Chartered Engineer's opinion did not explicitly state the rollers were usable, distinguishing this case from the precedent.

4. Considering the Chartered Engineer's detailed inspection and the lack of explicit usability mentioned, the Tribunal found the impugned order unsustainable. They referenced the previous clearances and set aside the decision, directing the clearance of goods after mutilation under customs supervision.

5. The judgment emphasized the importance of expert opinions, supplier certificates, and consistency in classification decisions. The analysis of the Chartered Engineer's report played a crucial role in determining the classification of the imported goods and overturning the initial decision.