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TMI Blog2013 (7) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... cientists of NML had proved the presence of "slag" and "skull scrap" in the consignment samples tested as per the Inspection Report on the basis of which the goods came under Chapter 26 of the Customs Tariff Act Heading 2619 which ultimately confirmed the requirement of specific license for import and the respondents failed to declare the same in the Bill of Entry, whether the conclusion arrived at in the Final Order passed by the Hon'ble Tribunal not having expertise in the subject goods and chemical analysis report submitted by NML, would be legally enforceable and tenable?" 2. The assessee is an importer. The assessee filed a Bill of Entry through their Customs House Agent representative for clearance of 172.54 MTs of goods declared as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... analysis, the material could be considered as non-alloy steel skull scrap suitable for melting and the percentage of recovery of iron from the scrap was about 80% by weight. The assessee claimed that the goods declared in the bill of entry were non-alloy steel melting scrap consisting of skull and the same fall under the heading 72.04. Whereas, the Revenue sought to assess it under the heading 26.19 treating it as slag. Inspite of the objection raised by the assessee that the materials were for melting purpose only, the Revenue treated the same as falling under heading 26.19. In the circumstances, the Revenue held that the goods were liable for confiscation under Section 111(d) of the Customs Act, 1962 r/w Section 3(3) of Foreign Trade (De ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthority) reported in 1982 (10) ELT 485 (Electrosteel Castings Ltd) and 1982 (10) ELT 628 (Texmaco Ltd). 6. On going through the materials available and the decisions relied on by the assessee, the Tribunal held that the goods in question had about 80% of iron along with some amount of slag as reported by NML and the presence of small amount of slag in the subject goods itself would not make the scrap classifiable under Heading 26.19. The Tribunal further pointed out that in the case of Steel Authority of India Ltd., this Tribunal classified cast iron skull scrap under Heading 72.04 of the Schedule to the Central Excise Tariff Act. Since the Central Excise and Customs Tariffs are aligned in respect of classification of goods and considerin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slag, some molten iron also got removed, which was taken in ladle to slag dump yard. This molten iron got solidified and it remained in the slag dump yard. The assessee floated tender for recovery, removal and lifting of iron scrap. Thus, from tenders, it was clear that what was being recovered and cleared from the factory was iron scrap and not slag. The Tribunal, after referring to various decisions, ultimately held that iron scrap cleared from the factory, after recovering it from slag dump yard would fall only under sub heading 7204.10 of CETA. The Tribunal pointed out that cast iron scrap recovered in the slag dump yard and cast iron skull scrap obtained in the process of breaking up in the ladle breaking yard were similar and both th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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