2010 (3) TMI 606 - AT - Central Excise

Scrap Import of - The contention is that the appellants are actual user as having induction furnace and as per the provisions of Notification 21/2002-Cus. the appellants filed necessary declaration to the effect that the same are to be used of melting purpose and the appellants are also liable to produce certificate by the proper officer regarding specific use. The contention of the appellant is that the impugned goods cannot be treated as second hand railways axles. Held that no whisper in the expert opinion of Chartered Accountant about impugned goods being serviceable. In the absence of any evidence of old & used goods being serviceable they are to be treated as melting scrap. Impugned order set aside

Summary

Issues:
1. Whether the imported old and used railways wagons (Heavy Melting Scrap) are liable for confiscation under the Import Policy.
2. Whether the goods can be considered as scrap or not based on expert opinions and legal precedents.

Analysis:
1. The appellant appealed against an order confiscating old and used railways wagons imported as Heavy Melting Scrap, contending that they are actual users with an induction furnace and filed necessary declarations for melting purposes under Notification 21/2002-Cus. The appellant argued that the goods cannot be treated as second-hand railways axles, citing a Supreme Court decision and a Tribunal case supporting the classification of such goods as scrap. They emphasized the lack of evidence from the Revenue showing the goods' serviceability. The Customs Authorities accepted the declared value, and the appellant's position was supported by legal precedents. The Revenue argued that specific licenses were required for importing old and used goods under the Import Policy.

2. The Tribunal found that the goods were old and used axles, supported by a Chartered Accountant's opinion that did not mention their serviceability. Referring to the Supreme Court decision and the Tribunal case, the Tribunal concluded that old and used rails, billets, plates, axles, channels, and rusty pipes without evidence of serviceability are to be considered as scrap. The Tribunal set aside the impugned order, allowing the appeal based on the lack of evidence from the Revenue regarding the serviceability of the imported goods. The decision highlighted the importance of expert opinions and legal precedents in determining the classification of imported goods as scrap under the Import Policy.