2016 (3) TMI 844 - AT - Customs

Classification - Used damaged cut rails for melting (melting scrap) - Whether goods to be classified under CTH 72.04 denying benefit of exemption benefit under Notification No.12/2012 or under CTH 73.02 allowing benefit - Held that - by relying on the earlier decision of this Tribunal in the appellant s own case on similar facts HINDUJA FOUNDRIES LTD. Versus COMMISSIONER OF CUS. (IMPORT), CHENNAI 2013 (9) TMI 422 - CESTAT CHENNAI , the goods are to be classified under CTH 73.02. - Decided in favour of appellant with consequential benefit

Summary

Issues:
Classification of imported goods under Customs Tariff, denial of benefit under Notification No.12/2012, recurring nature of the issue.

Analysis:
The appellant contended that the issue pertained to the import of Used damaged cut rails for melting, classified under 7204 4900, and the denial of exemption under Notification No.12/2012, S.No.332. The Ld. Counsel referenced a previous decision by the Tribunal in the appellant's own case. The Adjudicating Authority classified the goods under CTH 73.02 and rejected the benefit of the notification. The Commissioner (Appeals) upheld this decision. The Tribunal considered the recurring nature of the issue as the goods were regularly imported and consumed by the appellant. The Tribunal referred to various legal precedents related to the classification of similar goods under different headings, emphasizing the distinction between melting scrap and re-rollable scrap.

The Tribunal analyzed the competing Headings of 72.04 for scrap and 73.02 for rails. It noted that the issue was not whether the goods were rails or scrap but whether they qualified as melting scrap or re-rollable scrap for the purpose of the notification. The Tribunal highlighted that the expressions melting scrap and re-rollable scrap were not defined in the Customs Tariff or HSN notes. Considering the decisions classifying similar goods under Heading 72.04 and the need for consistency in classification, the Tribunal concluded that Heading 72.04 was more appropriate. It observed that the goods were indeed used in melting, leading to the decision to allow the appeal and set aside the lower authorities' orders, including the confiscation of goods and penalties imposed.

In alignment with the previous decision in the appellant's own case, the Tribunal set aside the impugned order and allowed the appeal, granting consequential benefits to the appellant. The miscellaneous application for early hearing was also disposed of. The Tribunal's detailed analysis of the classification issue and the application of relevant legal principles resulted in a favorable outcome for the appellant, emphasizing consistency in classification and the specific nature of the imported goods in question.