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TMI Blog2007 (6) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... td. (appellants in Appeal No. C/112/2007) and filed a bill of entry dated 10-11-2006 for clearance of the goods on payment of duty as applicable to Heading 7204 49 00 of the First Schedule to the Customs Tariff Act. The bill of entry described the goods as above. The department got samples of the goods tested at the National Metallurgical Laboratory (NML, for short). The NML report reads thus "based on visual examination and chemical analysis, the material can be considered as non-alloy steel skull scrap suitable for melting. The percentage of recovery of iron from the scrap is about 80% by weight". The report also observed that the skull scrap was found with some amount of slag. Taking this 'slag' content into account, the department alleg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w dust, filings, trimmings and stampings, whether or not in bundles'. The second sub-division is 'Other' - residuary entry under the category of 'other waste and scrap'. According to the Revenue, the subject item would fall under Heading 2619 and sub-heading 2619 00 10. The Heading covers 'slag, dross (other than granulated slag), scalings and other waste from the manufacture of iron or steel'. The entry 2619 00 reads identically. There are two sub divisions under this entry, the first of which covers 'converted slag (scull) of blast furnace'. The remaining sub-heading is residuary ('Other'). 3. Learned counsel has relied on the NML report, which declared the item to be non-alloy steel skull scrap suitable for melting and reported its c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5% metal (the rest being waste), was held to be non-excisable. The Government relied on Specification: 1529/1953 (Indian Standards) which required that 'skull scrap' used for remelting should not contain more than 5% slag. Finally, learned counsel urges that the item be classified under Heading 72.04 and the impugned order be set aside. 4. Learned SDR, on the other hand, refers to HSN Notes under Headings 72.04 and 26.19. It is submitted that slag or other waste from the manufacture of iron or steel, even if suitable for the recovery of the metal, is covered by the Heading 26.19 and is expressly excluded from the coverage of Heading 72.04. Relying on the HSN Notes under Heading 26.19, learned SDR submits that what can be classified und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith some amount of slag as reported by NML. NML considered the goods to be non-alloy steel skull scrap suitable for melting. On account of the presence of a small amount of slag in the subject goods, the Revenue seeks to classify it as 'slag' under Heading 26.19. But the fact is that 'steel skull scrap' of any category can contain slag to varying extents as is seen from "Indian Standards CODE FOR CLASSIFICATION OF PROCESSED FERROUS SCRAP" (first revision) vide IS 2549:1994. In the case of Steel Authority of India Ltd ., this Tribunal classified cast iron skull scrap under Heading 72.04 of the CETA Schedule. It is not in dispute that the Central Excise and Customs Tariffs are aligned in respect of classification of goods. We have also taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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