9911796707
TMI Blog2003 (11) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... five lakhs) has also been imposed upon the appellants under the provisions of Section 112 of the Customs Act, 1962. 2.As per the facts on record, the appellants filed two bills of entry both dated 29-6-2001 under DEPB Scheme declaring the goods as "Silicon Steel Melting Scrap" of Korean origin with a declared unit price of US $ 200 per MT (CIF). The said bills of entry were assessed provisionally by accepting the claim of benefit of Notification No. 17/2001-Cus. 3.However, the goods were subsequently examined on 4-7-2001 by the Special Investigation Branch in the presence of the Shed Appraiser and Representative of the Customs House Agent. The goods were also re-examined at the request of the appellants. It was found that the goods wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes; that the appellants are entitled to the benefit of Notification No. 17/2001-Cus., inasmuch as the goods were brought for the purposes of melting; that the Department's allegation that the same are 'Silicon Strips' is against their own Examination Report, inasmuch as the goods were found to be old, used and rusted; that the Silicon Steel Strips are generally used for electric stampings and the old, used and apparently defective material cannot be used for such purposes; that the appellants have given an undertaking in terms of the notification that the goods would be used for melting purposes; that the value declared by the appellants was correct inasmuch as the same was arrived at after negotiation with the supplier and there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ap appearing in Note : 8(a) of Section XV of the Customs Tariff Act, 1975. He also submits that the appellants have taken a categorical stand before the Commissioner that the Steel Strips once used cannot again be used for the purposes of stampings and as such lose their character of the strips. Inasmuch as the goods were admittedly old and used, they were not in a position to be used as strips, but used for the melting purposes. In this connection, the findings of the Commissioner that the same are strips cannot be upheld. Shri Mehta draws our attention to the Tribunal's decision in the Pawan Goel v. Commissioner of Customs reported in 2001 (135) E.L.T. 1425 (Tribunal), wherein it was held that the aluminium reams found present in the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The above contention raised by the appellants has not been controverted by the Revenue. In fact, the Commissioner has himself observed that the goods are old, used and rusted on the sides. If that be so, the same cannot be strips. At this stage, we also take note of the decision of the Hon'ble Punjab and Haryana High Court in the case of Patiala Castings Private Limited v. Union of India reported in 2003 (156) E.L.T. 458 (P H). It was held in the said decision that the goods imported being rusted, pitted and perforated and used and repaired earlier, cannot be considered usable pipes, the same have to be treated as iron waste and scrap and meant for melting purposes. The ratio of the above decision is squarely applicable to the facts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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