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TMI Blog1982 (6) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... hich brought about certain important changes in the language of Item 63(20-A) of the erstwhile Indian Customs Tariff and the relevant notifications. The dispute in all the cases is with regard to the correct rate of duty applicable to the subject goods. The customs authorities classified the impugned goods as stainless steel sheets and assessed them to duty accordingly under Item No. 63 (20-A) ICT at the rate applicable at the material time. Besides, the goods were subjected to auxiliary duty as applicable with reference to the rate of basic customs duty. In addition, countervailing duty was also charged but there is no dispute with regard to this aspect of the assessment. In most of the cases the petitioners claimed re-assessment at the lower basic rate of 60 per cent at the initial stage but in the revision applications they have shifted their ground and have staked their claim for re-assessment at the still lower rate of 30 per cent in terms of Notification No. 43-Cus. dated 29-5-71 which appears as a footnote to Tariff Item 63(14) ICT. In other words, according to the changed ground their claim is for reclassification of the goods as steel strips under item 63(14) I.C.T. and co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fiable and assessable as stainless steel strips as claimed by the petitioners. 4. The principal points urged in support of the petitioners claim for re-assessment of the goods as strips are as under: (i) The Indian Standard Institution has prepared standards for the guidance of the manufacturers and consumers to assist them in the iron and steel industry. lt is hoped that this glossary of terms will help in establishing a generally recognised usage and eliminate ambiguity and confusion arising out of individual interpretation. Terms dealing with iron and steel were put forth by the ISI in IS: 1952-1962 according to which the following definitions were given: Sheet - A hot or cold rolled flat product rolled in rectangular cross section of thickness below 5 mm and of width 600 mm and above supplied in straight lengths. Strips-Hot or cold rolled flat product of thickness below 10 mm if of width less than 600 mm and supplied in coils-known as narrow strips. If of width above 600 mm and supplied in coils, they are known as wide strips. From the definition of a strip given by ISI, it is seen that it can be of a width of more than 5 . Hence, the Board s Ruling of 1934 bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustry is that what is set by ISI. (vii) In the Supreme Court case of the Union of India v. Delhi Cloth and General Mills Company (AIR 1963 SC 291) it has been observed thus: The view of the ISI as regards what is refined oil as known to the Trade in India must be preferred to any other authority . These observations support the petitioners contention that even the trade recognises the subject goods to be strips and not sheets as held by the Appellate Collector. (viii) The Government of India by their order-in-revision No. 2065 passed by Shri D.N. Kohli, Joint Secretary has held similar goods to be strips even though they were of a width exceeding 5II. In view of this order, rejection of their appeals by the Appellate Collector on the basis of the obsolete Ruling of 1934 was not justified. (ix) The Madras High Court have in their judgment reported in 1977-2 MLJ 202 held in a case similar to the ones under consideration that such goods are only strips and not sheets. There the Court has held thus: The main difference between sheets and strips according to those meanings, is that while strips have either a width of less than 600 mm or more but are supplied in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AIR 1977 SC 597). That was also a customs matter and the dispute there related to the classification of V.P. Latex under the Indian Customs Tariff. The ratio of the aforesaid judgment which is applicable to these cases can be gathered from the following observations of the Hon ble Supreme Court : It is well established that in interpreting the meaning of words in a taxing statute, the acceptation of a particular word by the Trade and its popular meaning should commend itself to the authority..................... lt is clear that meanings given to articles in a fiscal statute must be as people in trade and commerce, conversant with the subject, generally treat and understand them in the usual course. But once an article is classified and put under a distinct entry, the basis of the classification is not open to question. Technical and Scientific tests offer guidance only within limits. 7. The point to be pondered over now is whether on the available material the classification made by the appellate authority can stand the test of scrutiny in the light of the above principles laid down by the Supreme Court. It is observed that the only material disclosed by the orders-in-appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tands to reason that trade meanings of such products are subject to change with technological advancement over such a long period of time. (iv) There appears to be considerable force in the petitioners argument that by issuing their Notification No. 118-Cus., dated 20-8-65 as subsequently amended by Notification No. 138-Cus dated 25-8-65, the Government of India did recognise the position that stainless steel strips could be of a width of more than 250 mm. In fact, since the notification which was issued under section 25 of the Customs Act. 1962 was statutory in character, it would follow that the Board s ruling of 1934 which was in the nature of an executive Instruction stood automatically rescinded. The validity of this argument remains even though the notification was rescinded some time in 1973. (v) The ruling No. 23 of 1965 issued by the Central Excise Wing of the Board adopted definitions of sheets and strips as laid down by the ISI in the latest revision of their Glossary of terms relating to Iron and Steel (IS 1956-1962), though the said ruling of the Board talks of its applicability only for the purpose of Central Excise duty and countervailing duty in the case of i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pto November 9, 1975 would mostly be relevant for the purpose of determining the classification of the goods imported. The aforesaid definitions are as under:- 5.23 Coiled Strip-A hot or cold rolled flat product, rolled in rectangular cross section and supplied in coil form. 5.98 Sheet-A hot or cold rolled flat product, rolled in rectangular cross-section of thickness below 5 mm and of width 600 mm and above and supplied in straight lengths. 5.113 Strip-A hot or cold rolled flat product, rolled in rectangular cross section of thickness 10 mm and below and supplied with mill, trimmed or sheared edges (a) Narrow strip-Strip (other than hoop) of width below 600 mm and supplied in straight length or in coil form. (b) Wide strip-Strip of width 600 mm and above and supplied in coil form only. 9. It may incidentally be mentioned that the Amendment No. 2 of July 1968 also introduced in the Glossary a Table giving shape, dimensions, etc. of various products as in Appendix A. In so far as Sheet , Strip and Coiled Strip are concerned, the dimensional specifications regarding the same as given in the said Appendix are entirely in accordance with the definitions in force i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these cases, the Government observe that though the photo-copies of the bills of entry and invoices produced by the petitioners in respect of most of the consignments do show the impugned goods to be in the form of coils as averred by the petitioners, the actual documents corresponding to these copies have not been produced. In respect of some of the consignments, however, the original, duplicate or triplicate bills of entry with the relevant invoices are borne on the Custom House records. The classification in these cases can thus be determined straightaway. Two of such consignments pertain to M/s. Gemini Metal Works. These consignments were imported ex.s.s. Jalamoti and ex.s.s. Vishva Yash and the relevant bills of entry are Cash No. l97 dated 7-1-75 and Cash No. 415 dated 17-8-74, respectively. These goods are invoiced as Heat Resisting Steel Strips in Coils of 20 inches and wider and of thickness thinner than 0.71 mm. in the first case and as Heat Resisting Steel Sheets in Coils Cold Rolled of 11 or wider 26 Gauge and Thinner of U.S. Origin in the other. 26 gauge connotes a thickness of .457 mm. The bills of entry confirm the goods imported to be in coils. Applying ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, there can be no doubt that the goods were flat products, rolled in rectangular cross section. In view of this position, these goods can also be classified as wide strips in terms of the aforesaid amplified definition. Now since wide strips are also strips, the classification of the goods would remain the same, namely, as stainless steel strips. 16. It is further noticed that in one more case which relates to M/s. Meghraj Metal Industries and where the bill of entry and invoice are available on the records, the bill of entry was presented in January 1976 i.e. after the November-1975 revision became effective. (The goods arrived in December 1975). The bill of entry (Cash No. 265, dated 8-1-1976 and ex.s.s. Jaladuta ) and the invoice show that the goods in this case were also in the form of coils. The thickness is shown to be 0.5 mm which means that the thickness comes well within the limits prescribed in the ISI definition in force. It is also in evidence that these goods were cold rolled and had sheared edges. The fact that the goods have been assessed as sheets by the Custom House would leave no room for doubt that the goods were flat products, rolled in rectangular cross sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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