2017 (3) TMI 1116 - AT - Customs

Benefit of N/N. 21/2002-Cus - import of wires of nickel alloy - partial exemption - denial on the ground that the said serial No.438 covered articles of nickel while the wires imported by the appellant were articles of nickel alloy - Held that - it is undisputed that the appellant had imported a consignment of wires made of nickel alloy. We find from the tariff that Chapter Heading 7505 talks about nickel bars, rods, profiles and wire and Chapter Heading 7505 2200 talks about wires of nickel alloys. Undisputedly, the nickel alloy is an item arising out of nickel and other metals which would mean that presence of nickel is not disputed - In the absence of any other evidence to show that wires of nickel alloys are not made out of nickel, the benefit of notification cannot be denied - appeal allowed - decided in favor of appellant-assessee.

Summary

Issues:
Interpretation of Notification 21/2002-Cus regarding exemption for nickel alloy wires.

Analysis:
The appeal concerned the denial of partial exemption from duty on a consignment of nickel alloy wires imported by the appellant. The issue revolved around whether the wires qualified for the exemption under serial No.438 of Notification No.21/2002-Cus, which covered "Nickel and articles of nickel." The adjudicating authority and the first appellate authority had both ruled against the appellant, stating that the wires imported were articles of nickel alloy, not nickel itself.

The appellant argued that the notification referred to articles falling under Chapter 75 of "nickel and articles of nickel," and since the wires were of nickel alloy, they should be considered eligible for the exemption. Reference was made to Note 6 of Section XV of the Customs Tariff, which indicated that a reference to alloy included the base metal. A previous Tribunal judgment involving alloy steel was cited to support the contention that the heading in the notification should encompass alloy variations as well.

The departmental representative supported the findings of the lower authorities, maintaining that the exemption did not apply to nickel alloy wires. Upon reviewing the records, it was established that the issue centered on the interpretation of extending the benefit of Notification 21/2002-Cus at serial No.438, specifically covering "Nickel and articles of nickel."

The Tribunal noted that the appellant had indeed imported wires made of nickel alloy, and the relevant tariff headings differentiated between nickel and nickel alloy products. Considering that nickel alloy comprised nickel and other metals, the presence of nickel in the imported wires was confirmed. Section Note 6 of Section XV clarified that references to base metals included alloys classified as alloys of that metal. Without evidence to prove otherwise, the Tribunal concluded that wires of nickel alloys fell within the scope of the notification.

Drawing from a previous Tribunal decision involving steel alloys, the Tribunal emphasized the broad definition of steel to include various kinds of steel, such as stainless steel and alloy steel. The decision highlighted that the intention of the notification was not to exclude alloy steel from the exemption. Consequently, the impugned order denying the exemption for nickel alloy wires was deemed unsustainable and set aside, allowing the appeal with any consequential relief.

In conclusion, the Tribunal ruled in favor of the appellant, overturning the lower authorities' decision and granting the benefit of the exemption for the imported nickel alloy wires under the specified notification.