2012 (9) TMI 462 - AT - Customs

Classification import of goods - scrap of iron & steel/re-rollable as well as reusable - department alleged that the goods classified under the Chapter 73 were restricted items and per EXIM policy Held that - Goods were old and used cut pieces, and cuttings etc. of various articles of iron and steel. Hence the same were in fact melting steel scrap, which is classifiable under Chapter 72 - Revenue s appeal rejected

Summary

Issues:
1. Classification of imported goods under the Customs Tariff Act.
2. Assessment of customs duty on re-rollable and reusable scrap.
3. Appeal against the order of assessment by the Revenue.
4. Examination report findings and acceptance by the respondents.
5. Interpretation of the examination report and classification under Chapter 72.

Classification of Imported Goods:
The case involved the classification of imported goods under the Customs Tariff Act, specifically re-rollable and reusable scrap. The imported goods were examined by Customs Authority and found to be re-rollable and reusable material of iron and steel. The assessment orders classified the goods accordingly under specific sub-headings for customs duty calculation.

Assessment of Customs Duty:
The assessment orders dated 16-9-2005 determined the customs duty rates for the re-rollable and reusable scrap. The re-rollable material was assessed at a concessional rate of customs duty, while the serviceable second-hand goods were assessed at the normal rate. The total duty amounts were paid by the respondents for clearance of the goods.

Appeal Against Assessment Order:
The Revenue filed an appeal before the Commissioner (Appeals) challenging the assessment order. However, the appellate authority rejected the appeal, stating that the imported goods were correctly classified under Chapters 72 and 73 of the Customs Tariff Act based on the examination report findings. The appeal was dismissed on the grounds of lack of additional evidence to dispute the examination report.

Examination Report Findings:
The examination report confirmed that out of the total quantity of imported goods, a specific portion was re-rollable scrap under Chapter 72, and the rest was reusable scrap under Chapter 73. The respondents accepted the examination report and paid duty accordingly. The examination details described the imported goods as old and used cut pieces of iron and steel.

Interpretation of Examination Report:
The Tribunal analyzed the examination report details, which specified the nature of the imported goods as old and used cut pieces of iron and steel, falling under the classification of melting steel scrap under Chapter 72. The Tribunal upheld the lower authorities' views and rejected the Revenue's appeal, concluding that the classification was appropriate based on the examination findings.

In conclusion, the Tribunal upheld the classification of the imported goods as re-rollable and reusable scrap under specific sub-headings, based on the examination report details and accepted by the respondents. The appeal by the Revenue challenging the assessment order was dismissed due to the lack of evidence to contest the examination findings. The Tribunal affirmed that the goods were correctly classified under Chapter 72 as melting steel scrap, leading to the rejection of the Revenue's appeal.