1995 (4) TMI 172 - AT - Customs

Summary

Issues:
- Classification of imported scrap under specific license provisions.
- Interpretation of import policy appendices.
- Validity of license for import of melting scrap.

Classification of Imported Scrap:
The appeal was against an order holding a consignment of heavy melting scrap liable to confiscation but allowing redemption on payment of a fine. The appellants, engaged in manufacturing machinery parts, imported the scrap for melting in their electric furnace. The Department objected to clearance, stating that 70% of the goods were oversize and did not conform to the scrap specifications. The adjudication order passed by the Additional Collector upheld this objection.

Interpretation of Import Policy Appendices:
The main contention revolved around the classification of the imported goods. The appellants declared the goods as heavy melting scrap, but the Department argued that they did not meet the specifications for heavy melting scrap as per the import policy. The dispute centered on the interpretation of the relevant appendices in the import policy, specifically Sr. No. 17 of Appx. 5A and Sr. No. 147 of Appx. 2B. The Department claimed that the goods fell under Sr. No. 147 of Appx. 2B due to non-conformity with heavy melting scrap specifications.

Validity of License for Import of Melting Scrap:
The Tribunal analyzed the provisions of the import policy appendices in detail. It noted that Sr. No. 17 of Appx. 5A covered waste and scrap for remelting of non-alloy steel, while Sr. No. 147 of Appx. 2B encompassed defective/scrap material. The Tribunal emphasized that any item in Appx. 5 would prevail over items in Appx. 2B as per the policy. Additionally, it highlighted the importance of specific descriptions over generic descriptions in the appendices. Relying on precedent and interpretation of the policy, the Tribunal concluded that the license was valid for the import of melting scrap, overturning the previous order and allowing the appeal with consequential relief.

This detailed analysis of the judgment showcases the meticulous examination of the import policy provisions, classification of goods, and the precedence of specific descriptions in resolving the dispute over the validity of the import license for melting scrap.