2004 (10) TMI 144 - AT - Customs

Summary

Issues: Classification of 'Aluminium Scrap ISRI Grade Throb' under Heading 7601 or 7602

In this case, the main issue revolved around the correct classification of 'Aluminium Scrap ISRI Grade Throb' under either Heading 7601 as 'Unwrought Aluminium' or Heading 7602 as 'Aluminium Waste and Scrap'. The appellant argued that in international trade, this item is recognized as 'Aluminium Scrap' and not 'Unwrought Aluminium'. The appellant also highlighted that the DGFT had classified it as such in the eight-digit classification. The introduction of the eight-digit classification in 2004 specifically named various types of scrap, including 'Throb', under 7602. The appellant contended that the correct classification under the previous scheme was 7602 as "Aluminium Waste and Scrap."

Analysis:
The Tribunal considered the arguments presented by the appellant and the learned JDR who referred to the HSN Note under 7602, which excludes "ingots and similar unwrought forms, cast from remelted aluminium waste and scrap" from Heading 7602. The Tribunal noted that the eight-digit classification introduced in 2004 was a more detailed and expanded classification. It specifically listed "Throb" under Heading 7602 as aluminium waste, a classification previously adopted by the DGFT. The Tribunal found that there was no evidence to show that the imported items were cast from remelted aluminium waste and scrap to be excluded from 7602. Therefore, the Tribunal concluded that the impugned order's classification of the item under Heading 7601 as 'Unwrought Aluminium' was not sustainable. Consequently, the impugned order was set aside, and the appeals were allowed with any consequential relief permissible to the appellants.