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TMI Blog1987 (5) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the Iron and Steel Control Price Circular 1959. At the initial stages the Appellants were classifying them as re-melting/re-rollable scrap on the invoices, but subsequently reduced the rate of duty from Rs. 125/- per M/T to Rs. 75/- per M/T by overwriting the invoices. The full description of the scrap was mentioned by the Appellants in the initial stages, but they stopped this practice after an objection was raised by the Range Superintendent. The Appellants were, therefore, called upon to pay a duty of Rs. 1,69,972.10. 3. In their reply, the Appellants contended that there was an agreement between them and M/s. TAYO to manufacture steel ingots out of the re-melting scrap of various sizes supplied by the Appellants to TAYO on payment of conversion charges. The Appellants urged that the duty was correctly paid at Rs. 75/- per M/T on the scrap as the material was re-melting scrap and not industrial scrap or re-rollable scrap. 4. In spite of the representations, the Superintendent, Central Excise, made demands on the Appellants through their R.T.12 returns claiming the differential duty. The Asstt. Collector refused to interfere with the demands. The Appellants filed an appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... billets, plates, axles, channels, etc., supplied to M/s. TAYO are arisings of the Appellants mills. These scraps are usually treated as melting scraps in developed countries as well as in India. He, therefore, gave his opinion that in the context of developments in iron and steel industry the size factor cannot always be the main criterion for the classification of steel scraps. On 24-8-77 the Director of Inspection has referred to this opinion of Shri Ray in a communication addressed to the appellants. When the learned Counsel for the Appellants sought to file these documents, he urged that these documents had already been filed in another Appeal No. ED/142/76. Mrs. Zutshi had no objection for the reception of these documents. Hence these documents were received as additional evidence. 7. Based on the additional evidence, Shri Ravinder Narain argued that the opinion of the Director of Inspection (Met.), which was sought for at the stage of the appeal, deserved utmost credence. The appellate authority has not referred to this opinion nor has he given his findings on that aspect. 8. It was urged that TAYO had no re-rolling facility and that this scrap was used for re-melting. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the size of the scrap herein she justified the classification under T.I. 26AA. The size was relevant for determining whether it was a mere scrap. The goods concerned in the appeal answer to the description of industrial scrap. 13. The point for decision in this Appeal is whether classification of the goods under T.I. 26AA is justified. It is well settled that the assessing authority should consider all aspects for deciding the classification of the goods and should not be guided by any singular fact. The show cause notice show that the goods have been described as industrial scrap . The main argument of the Appellants is that once the Department considers that clearances as scrap there cannot be a classification of the goods as products . But this contention overlooks the fact that in steel making industry, scrap may consist of by-products of steel fabrication and worn out, broken or discarded items containing iron and steel. In the Book The Making, Shaping and Treating of Steel edited by Harold E. McGannon at p. 254 the authors classify different kinds of scrap. It is seen therefrom that scrap could be - (1) Home scrap, (2) Purchased scrap, (3) Dormant scrap and (4) Prom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -steel-cuttings under 2 ft fall under this type. Similarly, for bars, hoops, sheets etc. the sizes have been specified in this order. From this aspect one can reasonably hold that these industrial scraps have a particular price because of their size and other characteristics. In the case of mere melting scrap, specifications are different and have been mentioned in Part-III, From this order we notice that melting scrap has been treated distinctly from industrial scrap. The goods in question do not answer to the description of melting scrap. From their size they fall under the Group of Industrial scrap . Since Tariff Item 26A referred only to melting scrap and industrial scrap herein had all the characteristics of the product , the Department was justified in classifying the goods as Iron and Steel products under T.I. 26AA. 16. We also see that the Appellants have been describing these items as re-melting re-rollable scrap in their invoices but have subsequently modified it by overwriting. This is yet another aspect, which shows that even the Appellants are aware that these re-rollable industrial scrap would attract a higher duty. The contention that these scraps have been use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Deputy Director of Inspection will not be conclusive. 18. he Appellate Collector has observed that the heavy melting scrap could be used for re-rolling and could be used for manufacture of iron and steel products without re-melting. 19. In the prior decision in respect of the same product, the Tribunal has observed that there was no claim that the goods could not have been used for any other purposes and no chance was given to the Central Excise to satisfy themselves that they could not have been used for any other purposes". In such a situation, the classification of the goods under T.I. 26AA cannot be rejected. 20. The Departmental Representative also drew our attention to the provisional assessment made at the instance of the Appellants. They have executed a bond undertaking to pay the additional duty, if any. 21. Having agreed to such a course, without any reserve to challenge the assessment, it is not open to the Appellants to contend that the order of the Asstt. Collector was incorrect. 22. Having regard to all the circumstances set out above and in view of the earlier decision of the Tribunal in respect of identical goods, we are of the view that there are n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roducts. In these circumstances, the assessments of the lower authorities cannot be lightly rejected; the goods assessed by the lower authorities would not be melting scrap i.e. scraps which have lost all resemblance to products from which they arose. 26. They were melting scrap only to the extent that they were actually melted; but that did not prevent the scrap being products though of inferior standards. The assessees had, in fact, changed the assessment at one time to a rate more advantageous to themselves; propriety demanded that they should have proved their case for a reduced rate of duty to the department and not taken the law into their own hands. The central excise were not given the chance to assess and examine the goods though the factory knew there were two rates of duty, one higher than the other, that could apply. 27. I am not satisfied that it is enough for a piece of metal to be melted for it to be called a melting scrap. All goods can be melted including prime ingots and otherwise good quality products. It will not do to label uncritically all steel goods as steel melting scraps, simply because they are melted. 28. It is quite true, perhaps, that such pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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