xIndia Pvt. Ltd. Vs Principal Commissioner of Customs (CESTAT Chennai)
The appeal before the CESTAT Chennai arose from an Order-in-Original passed by the Principal Commissioner of Customs, Chennai, concerning the classification of imported “Cold Heading Quality Alloy Steel Wire in Coils” of grade SCM435. The importer classified the goods under Customs Tariff Heading (CTH) 7229 9090 as “wire of other alloy steel” and claimed exemption under Notification No. 152/2009-Cus., attracting Basic Customs Duty at 5%. The customs department, however, alleged that the imported goods were actually “wire rods” classifiable under CTH 7227 9040. Based on this view, the department denied the exemption, demanded differential duty of Rs. 11.53 crore with interest, and proposed confiscation and penalties.
The importer argued that the imported material was Cold Heading Quality Steel Wire used in the manufacture of bolts, nuts, and screws and that the product had already undergone metallurgical processes such as pickling, coating, spheroidized annealing, and cold drawing. According to the importer, these processes converted wire rod into finished wire suitable for cold heading operations. The importer also relied upon BIS certification, which described the product as “steel wire,” and contended that the JIS G4053 specification merely referred to the steel grade and not the form of the product.
