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TMI Blog2017 (6) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... of appellant. - Excise Appeal No.314/2004 & Customs Appeal Nos.28603 -28604/2013 - 20809-20811/2017 - Dated:- 1-6-2017 - Mr S. S. Garg, Member (Judicial) And Mr. V Padmanabhan, Member (Technical) Shri G Shivadass, Advocate for the Appellants Shri Shri N Jagdish, Dr. J Harish, DR for the Respondent ORDER Per: V. Padmanabhan Through this order, we are deciding the Customs Appeals Nos. 28603 and 28604 of 2013 as well as Excise Appeal No 314/2004. The details of the relevant orders leading up to the present appeals are summarised below: Particulars C/28603/2013 C/28604/2013 E/314/2004 Bill of Entry 6 (104 dated 04.02.00, 408 dated 18.02.00, 538-542 dated 28.02.00) 2 (212 dated 12.11.99, 167 dated 09.12.99) Demand 3,94,67,488 3,45,50,527 Penalty 50,00,000 50,00,000 Fine 1,00,00,000 1,00,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which scrap is used in electric arc furnace, induction furnace or hot blast cupola. Hence, the application for end use certificate was rejected. 6. Being aggrieved by the above Order, the Appellant filed appeal before the Commissioner (Appeals) who passed impugned Order-in-Appeal No. 467/2003 upholding the rejection of end use certificate on the ground that scrap used as coolant in blast furnace is not entitled to exemption. 7. In the meanwhile, the Appellant was issued demand notices dated 04.08.2000 and 09.08.2000 by Customs Appraiser, Marmagoa Port demanding customs duty for failure to produce end use certificate as per the provisional duty bond. The above demand was confirmed vide Orders-in-Original No. 3/ 2014 4/2014 both dated 23.02.2014. 8. The Excise Appeal No 314/2004 is filed against the Order-in-Appeal upholding the rejection of the application for grant of end use certificate and Customs Appeals Nos. 28603 and 28604 of 2013 are against the Orders-in-Original denying exemption to imported goods for failure to produce end use certificate. 9. With the above background, we have heard Shri G Shivadass, learned Advocate for the appellant as well as Shri N Jagdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the electric arc furnace in the manufacture of different grades of steel. Thus, all imported goods are used in the electric arc furnace. The Notification when it uses the expression for use includes intended for use as well as indirect use and since in the instant case, the scrap is necessarily used in the basic oxygen furnace and thereafter in the electric arc furnace, the exemption cannot be denied. 12. Learned advocate also submitted a flow chart indicating the process of steel making in the appellants factory. The flow chart, which is reproduced below, also indicates that the imported scrap is partially added at the level of basic oxygen furnace and the rest of the scrap is added at the stage of electric arc furnace. He also brought to our notice that the liquid steel arising out of basic oxygen furnace is transferred into electric arc furnace for further refinement. 13. Learned DR supported the impugned orders. He further submitted that in terms of notification, only scrap which is for use in the electric arc furnace will be entitled to the benefit of concessional customs duty. The lower authorities have recorded findings that the appellant has used the import ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed to reflect the process of steel making in the appellants factory. According to flow chart as well as the submissions made, a part of the imported melting scrap is charged into the basic oxygen furnace. The rest of melting scrap along with other materials such as lime, ferro alloys etc. are charged into the electric arc furnace. The flow chart further indicates that the liquid metal arising out of basic oxygen furnace is entirely fed into the electric arc furnace along with the rest of scrap and other materials are processed to give refined liquid steel. As per the technical write up submitted by the appellant before Deputy Commissioner originally, the scrap loaded into the basic oxygen furnace besides melting and mixing with the molten metal also serves the purpose of cooling the molten metal. The authorities below have taken a view that adding the melting scrap in the Basic Oxygen Furnace for the purpose of cooling the molten metal, cannot be considered as use of molten metal in the electric arc furnace which is the condition in the notification. Further, they have not taken into account the fact that a significant portion of the melting scrap is also charged into the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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