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TMI Blog2015 (2) TMI 464X X X X Extracts X X X X X X X X Extracts X X X X ..... ap originated from dismantled rejected transformer . The goods were totally valued at CIF Rs. 1,02,77,119/- and the classification claimed under Tariff Item No.72044900 of the First Schedule of the Customs Tariff Act, 1975 which sub-heading inter-alia covers, scrap . The goods were taken up for examination on First Check Basis and on examination of the goods, the dock officers reported that on visual examination it is difficult to say whether the goods have been originated from old and used dismantled transformers or not, but goods appear to be scrap. As the goods were declared by the importer as Silicon Electrical Steel Strips/Scrap which does not appear scrap in view of Section Note 8(a) to the Section (XV) of the Customs Tariff Act, 1975, accordingly a show cause notice was issued alleging that the import was in in contravention of provisions of the Steel and Steel Products Quality Control Order, 2012 and 2014 read with para 2.17 of the FTP Policy,(2004-2014). Further, the Board vide its instruction issued under F.No.450/71/2014-CUS(IV) dated 9.7.2014 has clarified that import of second/defective/old and used CRGO sheets, strips and coil in any shape and size is not permitted in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shore Kr.Agarwal vs. CC(Port) 2010 (255) ELT 138(Tri.Kol.) and (iii) SPS Metal Cast & Oils Ltd. vs. CC(Port), Kol 2004 (163) ELT 265(Tri.-Kol), wherein the Tribunal held that the goods - Silicon Steel, Strips originating from dismantling of old and used transformers cannot be used for the second time, if they are already old and used. He submits that old, used and rusted items have to be considered as waste and scrap as held by this Tribunal in the cases of (i) Sujana Steel Ltd. vs. CCE, Hyderabad 2000(115)ELT529(Tri.), (ii) CC-Jodhpur v. Sunshine Artifacts-2012(280)ELT 156(Tri.Bom.), (iii) SPS Metal Cast and Alloys Ltd.v.CC(PORT)-Kol 2004(163) ELT 265(Tri.Kol), (iv) Patiala Castings Pvt.Ltd. v. UOI 2003(156) ELT 458 (P & H), (v) Hinduja Foundries Ltd. v. CC(Import), Chennai 2013(288)ELT 571(Tri.Chennai). 3.5 The Ld.Advocate submitted that Ministry of Steel in its Circular bearing No.1(8)/2012 TW dated 20.02.2014 intimated CBEC to look into the tenability of clearing Silicon Electrical Steel Scrap originated from old and used transformers as scrap. 3.6 Once the goods are confiscated under section 111(d) and not under Section 111(m) of the Custo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old and used CRGO Strips whose import is restricted under the provisions of FTP, 2009-2014 read with Steel and Steel Products Quality Control Orders (supra) and the impugned Board s Circular. 6. We notice that while passing the order, the Ld.Commissioner has stated that in view of reported misuse of substandard Strips(old and used) being sold to some local transformer manufacturers, for use in manufacture of substandard transformers and sold to electric supply company, Ministry of Steel has intimated the department of Revenue, Ministry of Finance that the Steel Products Quality Control Order (supra) has been enforced on all the grades of CRGO Steel sheets and strips excluding the domain refined goods (of prime quality). Accordingly Board issued instructions vide Circular dated 09.07.2014 clarifying that import of second/defective/old and used cargo sheets, strips and coil in any shape and size is not permitted. Since in this case the goods were declared by the importer as old and used Silicon Electrical Steel Strips/Scrap and no evidence could be produced that they are going to be disposed as scrap, their import was not authorized. 7. We find that in the matter of classification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir former purposes or can be adapted for other uses; it also excludes articles which can be refashioned into other goods without first being recovered as metal. Thus, it excludes, for example, structural steelwork usable after renewal of worn-out parts; worn railway lines which are usable as pitprops or may be converted into other articles by re-rolling; steel files capable of re-use after cleaning and sharpening. Thus it appears that the Heading 72.04 excludes articles which can be reused for their former purposes or can be adopted for other uses with or without repair or renovation. It is also evident that usability as such/after processing is an important criteria to arrive at the conclusion whether the goods are scrap. 8. We find that while observing that the impugned items are not scrap, the Ld.Commissioner has mainly relied upon the importer s declaration and the fact that no evidence could be produced to the effect that the said goods were going for re-melting. He has observed that importer in this case himself has not claimed the benefit of the customs Notification which is applicable to the scrap . However, this view of the Ld.Commissioner has been challenged before us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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