9911796707
TMI Blog2022 (5) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... 06.2021 and also registered in India under the Companies Act, 1956. The company has obtained registration with the Directorate General of Foreign Trade (DGFT) with a valid Importer-Exporter Code (IEC) Number AAGFU9198K. The appellant intended to import the goods in question from South Africa, and submitted an application under section 28H before the Custom Authority for Advance Rulings (in short ''CAAR'') seeking the classification of the goods in question as "waste and scrap" under Custom Tariff Item (CTI) 72044900 as defined as waste and scrap under the Note 8(a) of Section XV. The appellant has applied for obtaining the order from CAAR in order to get exemption under Serial No. 368 of Notification No.50/2017-Cus dated 30.06.2017 as amended vide notification No.02/2021-Customs dated 01.02.2021. [3] In terms of 13 of CAAR, the Customs Authority for Advance Rulings vide letter dated 18.06.2021 appointed respondent No.2 as Jurisdictional Commissioner for providing relevant records/comments on the application filed by the appellant. Respondent No.2 vide letter dated 07.07.2021 approved the classification of "the goods in question" in support of the appellant. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion cannot be considered as re-rollable steel scrap as specified under IS 2549;1994. [vi] The goods in question are essentially cold-rolled products as the hot rolled coils are used as raw material to manufacture cold rolled products by rolling them at ambient temperatures and thus, classifiable under heading 72.09. Therefore, given the uneven thickness of the goods in question, they are appropriately classifiable under Tariff Item 72099000. [4] Being aggrieved by the aforesaid order, the appellant has preferred this Other Tax Appeal under Section 28 KA of the Customs Act, 1962 before this Court. [5] The appellant has filed this appeal contending that the goods in question are indeed metal waste and scrap which are obtained from the mechanical working of metals. The Hot rolled coil is made to pass between two reels and the hydraulic force is gradually applied is initially low and is elevated to the desired level. While the intensity of the hydraulic force applied is low, uneven gauges i.e. thickness, width and elongations are created on the coil. The length of the coil with uneven gauges is cut at both ends and disposed of as scrap. These cut-ends from the main roll are not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (316) ELT 413 (M.P.) in which it has been held that any circular issued by C.B.E. & C. Circular has to be followed by departmental officers unless shown to be contrary to any law laid down by Supreme Court or High Court. The departmental officer cannot be refused to follow the same in the garb of being an administrative circular, advisory in nature. Hence, the impugned order be set aside and the goods in question be classified as waste and scrap. [6] The respondents have filed a reply opposing the admission of this appeal on the ground that waste and scrap are generally used for the recovery of metal by re-melting or for the manufacture of chemicals. The goods in question are not used for recovery of metal by re-melting with repair, renovation or re-rolling these goods can be adapted for other use, hence same cannot be treated as metal waste and scrap and are not classifiable under item 72.04. It is further submitted that the appellant has declared that the length of the coil will be 10-20 meters but it is difficult to get such a high length of scrap from the crop end (front and back end cuttings) of a coil. Hence, goods in question cannot be classified as remelting scrap attract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and measures at least twice the thickness. Flat-rolled products include those with patterns in relief derived directly from rolling (for example, grooves, ribs, chequers, tears, buttons and lozenges) and those, which have been perforated, corrugated or polished, provided that they do not thereby assume the character of articles or products of other headings. Flat-rolled products of a shape other than rectangular or square, of any size, are to be classified as products of a width of 600 mm or more, provided that they do not assume the character of articles or products of other headings. [8] The goods in question are having a thickness between 0.30 mm to 4 mm, width is from 900 mm to 1400 mm with weight ranging from 200-800 kgs and lengths between 15 to 20 meters has rightly been categorized as flat-rolled products not waste and scrap. As per item No.7204, Ferrous waste and scrap; remelting scrap ingots of iron or steel and the appellant is claiming under the item No.7204 49 00 i.e. other because same is not falling in any of the items from 7204 10 00 to 7204 50 00. Learned Authority has considered the product in question under heading 7209 i.e. Flat- Rolled Products of Iron or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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