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TMI Blog2016 (12) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... partment that broken copper cathodes are not a category of refined copper. Even if imported goods are not considered as ‘Sections of Cathodes’ then also the imported goods could be classified as ‘-Other’ under CTH 7403 19 00 so long as the imported goods satisfy the criteria of ‘Refined Copper’. The goods imported by the appellant will be classifiable, as a category of ‘Refined Copper’ under CTH 7403 and not as ‘Waste & Scrap’ of CTH 7404 - appeal allowed - decided in favor of appellant-assessee. - Appeal No.C/75215/2016 - ORDER No.FO/A/75972/2016 - Dated:- 31-8-2016 - Shri H.K. Thakur, Member (Technical) And Shri P.K. Choudhary, Member (Judicial) Sri S.K. Meheta, Advocate for the Appellant (s) Sri K.C. Jena, ADC(AR) for the Respondent (s) Per Shri H.K. Thakur 1. This appeal has been filed by the appellant with respect to Order-in-Original No.KOL/CUS/Commissioner/Port/01/2016 dated 15/02/2016 passed by the Commissioner of Customs (Port), Customs House, Strand Road, Kolkata-01, as Adjudicating Authority. Under this OIO dated 15.02.2016 Adjudicating Authority has held Broken Copper Cathode as Waste and Scrap of CTH 74040019 for which pre-shipment inspecti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not useable at all as copper cathodes as per Chartered Engineers opinion obtained and has to be considered as waste and scrap of CTH 7404 by virtue of section note-8 of Section -XV of Customs Tariff Act and chapter note given under Headings 7204, as made applicable by HSN notes under chapter heading 7404. That all categories of waste and scrap need pre-shipment inspection certificate under FTP and adjudication correctly ordered confiscation and redemption along with imposition of penalty. Learned AR defended the order passed by the Adjudicating Authority and also relied upon the following case laws in support of his argument; (i) Adhunik Corporation Ltd. -vs.-Commr. Of Customs(Port), Kolkata[2008(225)E.L.T.524 (Tri.-Kolkata)]. (ii) Adhunik Corporation Ltd. -vs.-Union of India[2009(246) E.L.T. 97(Cal.)]. 4. Heard both sides and perused the case records. The issue involved in the present proceedings is whether the goods imported by the appellant under Bill of Entry No.9171068 dt. 08.05.2015 should be classified under Customs Tariff Heading (CTH) 74031100 claimed by the appellant or CTH 74040019 decided by the Adjudicating Authority. The goods were described by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Element Limiting content % by weight Ag Silver 0.25 As Arsenic 0.5 Cd Cadmium 1.3 Cr Chromium 1.4 Mg Magnesium 0.8 Pb Lead 1.5 S Sulphur 0.7 Sn Tin 0.8 Te Tellurium 0.8 Zn Zinc 1.0 Zr Zirconium 0.3 Other 0.3 elements *, each 4.2. The percentage purity of the copper in the imported goods is more than 97.5% and there is no contrary evidence that other elements in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt argued this point before the Adjudicating Authority but the same was brushed aside by the Adjudicating Authority in para 15 of the OIO dt. 15.02.2016, as not relevant. Department cannot rely upon one portion of a chapter note of HSN explanatory notes on the one hand and ignore the other part of the same chapter note on the other hand. Secondly, HSN explanatory notes have to be relied upon in interpretation of Customs Tariff as the former is the mother of the latter where chapters of Customs Tariff HSN have been harmonized. Appellant herein is neither a trader nor the manufacturer of copper ingots etc. but is an actual user for the manufacture of copper alloy and stainless steel where refined copper is used as such for adjusting the % of the copper in the final steel/alloy products. It has not been challenged by the department that value of the imported goods is at par with the value of Waste Scrap prevailing in the international market. On the contrary appellant has argued that the imported goods have been purchased at international prices commensurate with the prices of prime copper material as per LME prices. Accordingly Chartered Engineer in his opinion dt. 21.05.2015 i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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