Jindal Stainless Ltd. Vs Commissioner of Customs (Port) (CESTAT Kolkata)
CESTAT Kolkata held that ‘Works Rolls’ are Capital Goods and not spare parts and hence eligible to be imported against full utilization of Status Holder Incentive Scheme [SHIS Scheme]. Accordingly, appeal of assessee allowed.
Facts- The Appellant are manufacturers of stainless steel items such as slabs, hot rolled steel coil, cold rolled steel coil etc. falling under Chapter 84 of the Central Excise Tariff Act, 1985. Work Rolls are used in Rolling Mills in the factory of the Appellant to ensure movement and processing of products such as slabs into plates, HR Coils/Sheets, CR Coils/Sheets etc.
In 2013-14 and 2014-15, the Appellant purchased a total of 8 duty credit scrips issued under the Status Holder Incentive Scheme (SHIS Scheme) from various status holders. Out of such scrips, the Appellant completely used 5 of them and 42% of the 6thscrip to import “Work Rolls” by classifying the same under CTH 8455 30 00 as “Capital Goods” and availing the benefit of Notification No. 104/2009-Customs dated 14.09.2009
Accordingly, a SCN was issued alleging that imported “Work Rolls” are not standalone Capital Goods. Since they are only “Parts or Spares of Capital Goods” of Rolling Mills. As per the terms of Notification No. 104/2009-Customs dated 14.09.2009, only 10% of the value of the scrips should have been used for payment of duty, whereas the entire value of the scrip was utilized by the appellant. After due process, the Adjudicating authority confirmed the demand. Being aggrieved the appellant is before the Tribunal.
