Case Law Details
Rukminirama Steel Rollings Pvt Ltd Vs Commissioner of Customs & Central Excise (CESTAT Mumbai)
CESTAT Mumbai held that ‘used mild steel (MS) plates’ industrial significance only as ‘waste and scrap’ which is the feedstock for melting in furnaces and hence classifiable as ‘waste and scrap’.
Facts-
The controversy in this appeal of M/s Rukuminirama Steel Rolling Pvt Ltd, a manufacturer of mild steel (MS) ingots and byproducts thereto from mild steel (MS) scrap, pig iron and heavy melting scrap (HMS), is the determination of the appropriate rate of duty on ‘used mild steel (MS) plates’ imported upon procurement of these after demolition of six ‘petrochemical tanks’ in the United Kingdom by M/s GK Middle East FZC, Ajman. Customs authorities chose to classify the impugned goods against tariff item 7208 2510 of First Schedule to Customs Tariff Act, 1975 corresponding to products in prime condition instead of the declaration against tariff item 7204 4900 corresponding to ‘waste and scrap’ in First Scheduled to Customs Tariff Act, 1975. In addition, order-in-original no. 21/2010-Commr Appg (Adj) dated 4th March 2010 of Commissioner of Customs and Central Excise & Service Tax, Goa held the goods, imported vide bills of entry no. 113029/30.04.2009, 103030/30.04.2009 and 113031/ 30.04.2009 and valued at ₹ 77,77,300, to be liable for confiscation under section 111(d) of Customs Act, 1962 but offered to be redeemed under section 125 of Customs Act, 1962 on payment of fine of ₹ 7,70,000 besides imposing penalty of ₹ 1,00,000 under section 112 of Customs Act, 1962 on the appellant herein.
Conclusion-
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