2004 (12) TMI 213 - AT - Central Excise

Summary

Issues involved: Classification of imported scrap under Customs Tariff and eligibility for benefit under Notification No. 21/02.

Summary:
The appeal was filed by the Revenue against the Order-in-Appeal passed by the Commissioner (Appeals), Kanpur, regarding the classification of imported scrap as Heavy Melting Scrap under Heading 7204.49 of the Customs Tariff and the eligibility for benefits under Notification No. 21/02.

The Revenue contended that a part of the scrap consisted of "Old and used rails" and rail sleepers, arguing that it should be classified as re-rollable scrap rather than melting scrap, thus not covered under Notification No. 21/02-Cus.

The respondents, as the actual users with a furnace for melting purposes, maintained that the scrap was imported solely for melting. They cited a previous Tribunal decision to support their position that even if a small part of the consignment was different, the overall classification as Heavy Melting Scrap should remain unchanged.

The Tribunal found that the scrap did indeed contain old and used rails and sleepers, but since the purpose of import was melting and the majority of the consignment qualified as melting scrap, any misdeclaration allegations were unfounded. The Tribunal emphasized that any doubts regarding certain pieces could be resolved through mutilation, as requested by the importer in this case, which was approved by the Commissioner (Appeals).

Ultimately, the Tribunal upheld the Order-in-Appeal, finding no issues with the decision and dismissing the appeal.