COMMISSIONER OF CUSTOMS Vs. LUCKY STEEL INDUSTRIES

JUDGEMENT

(1.) THIS appeal has been filed by the Revenue against Order -in -Appeal No. 160/JMN/2006, dated September 25, 2006 passed by the Commissioner (Appeals), Jamnagar. Brief facts of the case are that M/s. Lucky Steel Industries, Bhavnagar (respondent in the present appeal) imported 48.57 M.T. of old and used railway tracks and declared the same as railway tracks scrap (HMS) under the bill of entry filed for clearance of the imported goods. On examination, the goods were found to be used steel rails. Opinion from an expert was obtained who opined that the strength of the imported material was poor and that these railway tracks could not be reused and have only scrap value. The adjudicating authority held that goods imported are re -rollable and classified the same under Customs Tariff Heading 7302. It was further held that imported goods are restricted items as per paragraph 2.17 of the Foreign Trade Policy 2004 -2009 (Vol. I) and are liable to confiscation under section 111(m) and section 111(d) of the Customs Act, 1962. The adjudicating authority accordingly confiscated the goods and allowed redemption, on payment of Rs. 2 lakhs as redemption fine, under section 125(1) of the Customs Act, 1962. On an appeal the first appellate authority held the confiscation of imported goods to be as waste and scrap falling under Customs Tariff Heading 7204 and also held that revaluation of the goods was not done in the prescribed manner. In the grounds of appeal the Revenue only agitated that the old and used railway tracks are classifiable under Customs Tariff Heading 7302 and not under Customs Tariff Heading 7204 decided by the first appellate authority.

(2.) SHRI Manoj Kutty, (authorised representative) appearing on behalf of the Revenue made the Bench go through the provisions of Notification No. , dated March 1, 2002, Section Note 8 to Section XV, Customs Tariff Heading 7204 including the notes thereunder, and Customs Tariff Heading 7302 and also the notes thereunder. It was his case that the imported goods were old and used railway tracks classifiable under Customs Tariff Heading 7302 and that the importer has violated the restrictions imposed as per paragraph 2.17 of the Foreign Trade Policy 2004 -2009 (Vol. I). He relied upon the following case laws in support of his argument that the Central Board of Excise and Customs Circular No. , dated January 17, 2006 was an acceptable evidence :

(3.) HEARD both sides and perused the case records. It is observed that the issue of classification and valuation of the old and used railway tracks is no more res integra and has been decided by Chennai Bench in the case of Indo Deutsche Trade Links v. Commissioner of Customs : [2014] 28 GSTR 164 (Trib. -Chennai). Paragraphs 28 to 35 of this judgment are relevant and are reproduced below (page 175 of 28 GSTR):