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TMI Blog1997 (6) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... oth dated 24-2-1986 claiming assessment of the said goods under Heading 73.08 of the Customs Tariff Act. The importer had vide their letter dated 15-1-1985 stated that theirs is a rolling mill engaged in the activities of re-rolling of hot rolled coils into cold rolled strips by the cold rolling process i.e. reduction of thickness for better finish and giving the desired property and quality to the end users. They also submitted that Chapter Note 1(k) of Chapter 73 of the Customs Tariff pertains to `coils for re-rolling and accordingly these coils which are meant for re-rolling are covered by this definition. They requested that the goods should be assessed under Heading 73.08 of the Customs Tariff and in case their contention was not acceptable an appealable order be passed. An appealable order was therefore, issued classifying the goods under ICT 73.13(i) as it stood at the material time. They filed a Special Civil Application No. 1279 of 1986 before the Hon ble High Court of Gujarat, against the aforesaid appealable order issued by the Deputy Collector, Customs, Kandla. The Hon ble High Court of Gujarat vide their order dated 12-3-1986 directed that the case be re-opened and de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile the respondents have preferred the cross-objection against provisional assessment as, according to them, the assessment should have been approved finally. 5. We have heard Shri R.A. Sheikh, learned DR and Shri Pradeep Jain, learned Counsel and carefully considered their submissions. 6. There is no dispute that the respondents manufacture cold rolled strips from HR coils through rollers resulting in reduction of thickness. Further there is no dispute that the goods are unoiled, unpickled, not skinpassed removal of (surface unevenness to obtain flat product, clean bright surface and to control strip hardness) having mill edges and one meter long fish tail at both ends. Learned DR s contention that since the goods conform to the ISI specifications, they are not semi-finished goods is not correct, as all the raw materials in steel industry have to conform to a particular specification. Ingots which are basic raw materials for the iron and steel industry must also congorm to a particular specification in respect of chemical composition either under ISI or BSS or other standards acceptable in the industry and even semi-finished goods like blooms and billets, saibs and sheet bars ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , discharge the finished coil quickly without damage". Semi-finished products in the nature of hot rolled sheets are thus the basic raw materials for production of CRCA sheets/strips for which the appellants possess an industrial licence and the hot rolled sheets pass through various stages of process and finish during which their shape, size and metallurgical properties such as grain size, surface finish, hardness, tensile, strength, etc., get changed. 7. In the light of the above discussion, we hold that the goods have been rightly assessed under Heading 73.08 of the CTA. 8. As far as the cross-objections are concerned, the respondents have substantiated their claim that the imported goods were actually used for re-rolling with reference to copies of certificates given by the Customs authorities as well as end use certificates from their Chartered Accountants certifying the use of the imported material for re-rolling purposes (which certificates were permitted to be brought on record, as additional evidenced in terms of Rule 23 of the CEGAT (Procedure) Rules, 1982). Hence, we modify the order of the Collector (Appeals) by converting the order of the provisional assessment i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in fact finishing products because: (a) they have been found to conform to standard specifications like SAE 1008/1010 and IS : 1852. Standard specifications of goods are laid down by various international authorities like the SAE and the ISI for finished goods and not for semi-finished goods. Standard specifications are not necessary for semi-finished goods whose manufacture is not complete. Consequently, since the goods conform to standard specifications, they have to be treated to be finished products. (b) This view is further strengthened by the definition of finished goods in IS : 1956 (Part III) 1975 for `Glossary of terms relating to Iron and Steel wherein finished products have been defined as : `rolled or forged products whose transformation in an iron and steel plant is completed. There is no dispute that the impugned goods are rolled products whose transformation in an iron and steel plant is complete and, therefore, they should be treated to be finished products and not semi-finished products. There is no doubt that the expressions in the Customs tariff have to be construed in the sense in which they are understood in the trade. The authorities laying down the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion and not semi-finished goods". 14. It was also his submission that importer s contention that similar goods were being classified in Bombay and Madras under 73.08 is not relevant. He would also like to emphasise that the impugned goods can be put to various end uses which could be obtained by processes other than those of old re-rolling. As an alternative submission he would also like to draw attention to Rule 3(c) of the Rules of Interpretation of the Customs Tariff which stipulates that when goods cannot be classified w.r.t. Rule 3(a) or 3(b) then they shall be classified under the heading which occurs last among those which equally merit consideration. 15. It was also their contention that the details of the process of manufacture and the contemplated end use is of no relevance for the purpose of deciding the classification as held by the Hon ble Delhi High Court in its judgment in the case of M/s. Indian Aluminium Cables Ltd. reported in 1982 ECR 465. 16. He would like to emphasise that the Customs are basically concerned with the form of the goods in which they are imported and their condition at the time of importation and the post-clearance actions or activities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent category and is of different character and nature then the provisional assessment made under relevant sections of Customs Act by the Customs officer in the normal course. It is also observed that the goods were inspected in the docks and the examination report on the Bill of Entry shows that they were found as per invoice and the examiner has further added that they are genuine Prime M.S. H.R. Steel Sheets in coils and verified that `these are not fabricated, not galvanised, not coated and are magnetic . 21. We also observe that the ld. Deputy Collector is correct to an [extent] in his observation that for purposes of classification we are concerned with the goods in the form in which they are unloaded at the time and place of importation and not with the treatment or use to which they may be subjected subsequently but there is rider to this preposition which is left out i.e. it is normally so except when the language of the Heading or a Chapter Note, etc., provide otherwise. The ld. DR s emphasis on the relevance or otherwise of the post-importation/clearance actions or activities is required to be examined in the above context. Further, in the cases in which we are als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns for cold reduction in coils. The term `strip and `sheet as applied to the finished products have definite reference to width and gage limitations and the terms hot rolled breakdowns for cold reduction defines a semi-finished product for subsequent rolling by another process. Further, while hot rolled strip from a modern continuous mill may be used in the as-rolled condition, in which case it is referred to as hot rolled sheet with or without the application of such auxilliary treatment as pickling, shearing and flattening. When produced as hot-rolled breakdowns for cold reduction, it is pickled in coil form, cold reduced as much as 90% of its original thickness, heat treated and further processed to cold-rolled sheet, black plate, or the various coated sheet-mill and tin-mill products. Further more, the Chapter regarding manufacture of cold-reduced flat rolled products it is also mentioned that cold rolled carbon steel strip is manufactured in a variety of finishes, tempers, and edges all depending upon the end use. 23. Before cold rolling, the mill scale is removed from the hot-rolled strip, usually by pickling. From this point, the strip may be cold reduced to final thic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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