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TMI Blog2017 (8) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Customs Act, 1962, on furnishing of Bond - appeal allowed - decided in favor of appellant. - C/60167/2017 - A/61477/2017-SM[BR] - Dated:- 9-8-2017 - Mr. Ashok Jindal, Member (Judicial) Shri. Saurabh Kapoor, Advocate- for the appellant Shri. V. Gupta, AR- for the respondent ORDER Per: Ashok Jindal The appellant is in appeal against the impugned order wherein the seized goods were allowed to be released under Section 110 of the Customs Act, 1962 on the following conditions. (i) the goods shall be assessed to duty provisionally on the basis of the declared invoice value, purely for the purpose of provisional release of goods only, without any prejudice to the adjudication order to be passed in respect of the show cause notice issued to the importer in the case. (ii) The goods mentioned in column 6 of Table-I to para 3 excluding the HMS/CRGO scrap shall be mutilated so as to render them scrap in such a manner so that they cannot be used as such except for melting in accordance with definition of scrap in Section note 8(a) of the Customs Tariff. (iii) The CRGO scrap as detailed in column 6 of Table-1 to para 3 supra shall also be mutilate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 72044900) Old and used CRGO Strips in Core form (serviceable) 7226 1100 50 34 CE/OWPL/RG Gupta/16-17 dated 28.11.2016 3 B2B 716900/20.10.16 60.63 Re Rollable Steel Scrap (CTH 720044900) Old and Used CRGO Strips/Sheets in Core form(serviceable) 7226 1100 50 34 CE/B2B/RG Gupta/16-17 dated 28.11.2016 4 Concor 7174140/21.10.16 55.33 Re Rollable Steel (CTH 72044900) New CRGO Sheets (serviceable) 7225 1100 110 76 CE/Concor/RG Gupta/16-17 dated 28.11.2016 5 Concor 7169989/20.10.16 49.98 Re Rollable Steel Scrap (CTH 72044900) Old and Used CRGO Strips Sheets (serviceable) CRGO Melting Scrap 7226 1100 55 38 CE/Concor/RG Gupta/16-17dated 02.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respondent despite the fact that the investigation has completed and show cause notice has been issued to the appellant, which is pending adjudication. With regard to Bill of Entry no. 7173984 dated 21.10.2016 7169000 dated 20.10.2016: He submits that the goods were declared as re rollable steel scrap, which were reported as old and used CRGO strips in core form (Serviceable). The said findings were based upon the report of local Chartered Engineer, who opined that the material has been obtained from old and used dismantled transformers of different capacities. He submits that as the material is old and used it has been rightly classifiable as scrap and the provisional release order for mutilation is bad being based on the report of the Local Chartered Engineer, who is not conducted any market enquiry in respect of the utilization of the goods for any other purpose. The Hon'ble Tribunal in the case of Ansun System Consulting Pvt. Ltd. reported in 2005 (179) ELT 511 (Tri.Del.) and Kishore K. Aggarwal reported in 2010 (252) ELT 138 (Tri. Kol.) has held that the material imported from old Used Transformers is scrap. With regard to Bill of Entry no. 71 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scrap, therefore, the goods are not required to be melted which has not been disputed by the adjudicating authority. With regard to containers no.SCZU7828581 SCZU7833398, the chartered engineer opined that these containers contain material in the form of CRGO Sheet in coil form. The coils were found to be pressed and stuffed in the shape of stripped bundles and the said scrap was consisting of side trimmings, wires, auto bodies and other waste of steel. If the condition whereas is like that the chartered engineer has given opinion only on the basis of visual inspection and no other market enquiry has been conducted and he has not examined the usage of said sheets/strips. Further, I have gone through the classification of the Chartered Engineer who examined the priorities on visual examination on steel scrap, therefore, the opinion made by the Chartered Engineer is false and the same cannot be accepted unless until, there is concrete evidence on record. It has been found that the coils were found to be pressed and stuffed in the shape of stripped bundles and the said scrap was consisting of side trimmings, wires, auto bodies and other waste of steel, therefore, the mutilation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he scrap material obtained from old and used dismantled different capacity, therefore, it is scrap only, the same is not required to be mutilated. With regard to Bills of Entry No. 7174140: I find that the goods were found on examination as new Cold Rolled Grain Steel Sheets/strips in coil form. I find that the report of Chartered Engineer is not supported by any market enquiry or has not assigned any reasons as to how he has held the same to be New CRGo Sheets and the material which possesses the properties of a electric insulation. If such a material does not poses such properties, it is scrap only. No expert opinion has been obtained from any laboratory to get tested the said goods by the respondent whether the material is prime in nature or not.The pre inspection certificate issued by the Agency certified by DGFT has not been rejected or objected to by the authorities below. No enquiries have been made overseas to find out the composition of the material. In that circumstances, the report of the chartered engineer is not acceptable, as he is not a metallurgical engineer, therefore, in the absence any evidence on record, the goods are to be cleared as scrap, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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