2008 (7) TMI 87 - AT - Customs

Zinc dross imported zinc dross has zinc content of more than 92%. - chemical examiners of CRCL have tested the sample from the consignment twice and on both the occasions have reported that the sample does not conform to the ISRI code for scrub - imported goods, therefore, are zinc dross other than the dross confirming to ISRI code scrub, seal, seam or shelf and hence the same are restricted for import - Revenue s appeal is allowed.

Summary

Issues:
- Dispute over the classification of imported zinc dross under ISRI code scrub
- Whether the imported zinc dross is freely importable under EXIM code 79020010 or restricted under EXIM code 79020090

Analysis:
The judgment revolves around the dispute regarding the classification of imported zinc dross under the ISRI code scrub and its importability under the relevant EXIM codes. The Commissioner of Customs (Appeals) had set aside the confiscation of the goods and penalty imposed on the Respondents, stating that the imported zinc dross falls under the ISRI code scrub and is freely importable.

The Departmental Representative argued that any zinc dross not covered by the ISRI code scrub is restricted for import under EXIM code 79020090. They highlighted that the imported zinc dross contained 3-4% iron as per the test report, which does not align with the ISRI specification for zinc dross scrub. The Representative also contended that previous Tribunal judgments cited were not applicable to this case, emphasizing the importance of the goods being zinc dross of the ISRI code for free import.

On the other hand, the Respondents' counsel emphasized that the chemical examination by CRCL did not provide a valid reason to classify the zinc dross as other than scrub/seal/seam/shelf, especially since it contained over 92% zinc. They pointed out the agreement with the supplier and the test certificate confirming the goods as zinc dross of ISRI code scrub.

Upon careful consideration, the Tribunal concluded that the imported zinc dross did not conform to the ISRI code scrub, seal, seam, or shelf specifications. Despite having over 92% zinc content, the goods were found to be zinc dross other than that conforming to the ISRI code scrub, making them restricted for import under EXIM code 79020090. Consequently, the impugned order was set aside, and the Revenue's appeal was allowed.

This detailed analysis clarifies the core issues of classification and importability surrounding the imported zinc dross under the ISRI code scrub, leading to the Tribunal's decision in favor of restricting its import under the relevant EXIM code.