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TMI Blog1988 (3) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... solidated order. 2. Briefly the facts of the case are that the appellant had imported 3 consignments declared to contain stainless steel scrap covered by Bill of Entry No. 1909/4 of 22-12-1979 and 1821/57 of 20-2-1980. On receipt of intelligence report that serviceable item of stainless steel such as sheets, strips, coils etc. were being imported concealed in the consignment declared to contain stainless steel scrap by the appellant. The shipments were made by Overseas Development Disc Corporation, U.S.A. and the clearances were sought to be made by the importers letter of authority holder against the actual user licence in the name of M/s. Kashmir Cables, Srinagar. The goods were supplied at the rate of U.S.$ 1200 per M.T. On 100% examination of the consignment it was found that the consignment mainly consisted of S.S Sheets, strips and pipes and tubes of serviceable nature and it was also found that at the material time similar goods were being imported at the rate of US $ 1600 per M.T. CIF Bombay approximately. The revenue authorities were of the view that the goods imported by the appellant could not be allowed to be cleared against the licences produced which were valid for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nserviceable as a result of having outlived their utility. The discarded domestic articles would also constitute scrap. This is the general definition and meaning of the term scrap as is commonly understood in the normal course of trade. However, in the Note 6 to Section XV of CTA 1975. Waste Scrap has been defined as Waste and scrap metal fit only for the recovery of metal for use in the manufacture of chemicals. This definition has been taken from the B.T.N. which further elucidates waste and scrap as follows:- Such wastes and scrap of iron and steel is a miscellaneous nature and generally taken form of: (1) Waste Scrap resulted from the cutting shaping or other mechanical working of iron and steel (e.g. scrap ends, fillings, and turnings). (2) Unusable worn out and broken articles of iron and steel frequently crushed or compressed together. The process generally used for the recovery of metal is reme.l.t.ing. The scrap is reme.l.t.ed with or without new pig iron. But the heading Excludes articles, which, with or without repair or renovation can be reused for their former purpose or can be adopted for other use, it also Excludes articles which can be refashion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial uses or general terminology in the industry. He had held that the goods imported were sheets, strips, pipes and tubes and which on examination had been found to be other than old industrial scrap and they might have been defective and seconds and defective and seconds do not qualify to be classified as scrap. He had ordered that the invoice value should be accepted as there was no evidence of under-valuation. However, the goods imported were not genuine scrap and hence licences produced were not acceptable and the goods were liable to be confiscated under Section 111(d) and 111(m) of the Customs Act, 1962. He had allowed the importers to redeem the same under Section 125 of the Customs Act, 1962 after payment of fine of Rs. 35,000/-, Rs. 47,000/- and Rs. 16,000/- respectively for the goods covered by Bill of Entry Nos. 1909/4 of 20-2-1980, 1603/100 of 22-12-1979 and 1821/57 of 20-2-1980 respectively and had ordered that option should be exercised within one month from the date of the issue of the order. Being aggrieved from the aforesaid order, the appellant had filed an appeal before the Central Board of Excise Customs. The Board had remitted the fine in lieu of confiscation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nion of India and Others reported in 1983 (12) E.L.T. 258 (Del.) where in para No. 8 the Hon. Delhi High Court had held that where the stainless steel was imported the same has to be assessed under a particular heading and it will not make any difference whether the same was of prime quality or of defective or secondary quality. He has referred to another judgment of the Hon ble Supreme Court in the case of Dunlop India Ltd. Madras Rubber Factory Ltd. v. Union of India and others reported in 1983 (13) E.L.T. 1566 (S.C.) where the Hon ble Supreme Court had held that for the purpose of Customs Duty, the relevant taxing event is the importing into and exporting from India. The condition of the article at the time of importing is a material factory for the purpose of classification as to under what Head duty will be leviable. Shri Gopinath has argued that the classification done by the revenue authorities is very well in order and fine in lieu of confiscation in respect of two bills of entries at Rs. 47,000/- and Rs. 16,000/- are very reasonable. He has pleaded for the dismissal of the appeal. 5. Shri N.C. Sogani has again argued that the dimensions are not the criteria and has als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Customs Tariff Act would also apply to the Import Trade Policy. Accordingly, we confirm the findings of the lower authorities that the goods imported are sheets, strips, pipes tubes which on examination had been found to be other than old industrial scrap and could have been called to be defective and seconds and defectives and seconds do not qualify to be classified as scrap. On the issue of classification, we confirm the findings of the lower authorities. We very respectfully, follow the judgment of Hon ble Delhi High Court in the case of Super Traders and another v. Union of India and others reported in 1983 (12) E.L.T. 258 (Del.). Keeping in view the totality of the circumstances we confirm the findings of the lower authorities. To meet the ends of justice, we further reduce the fines in lieu of confiscations against Bill of Entry No. 1603/100 of22-12-1979 and 1821/57 of 20-2-1980 from Rs. 47,000/- and Rs. 16,000/- to Rs. 35,000/- (Rupees thirtyfive thousand only) and Rs. 10,000/- (Rupees ten thousand only) respectively. In the result the appellant is entitled to a relief of Rs. 12,000/- + Rs. 6.000/- totaling Rs. 18,000/- (Rupees eighteen thousand only). Except for this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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