The Customs, Excise & Service Tax Appellate Tribunal, Ahmedabad Ordered the fresh examination of applicable circular in Brass Scrap Import Case.
Facts
The dispute is, if the appellants have imported and used the brass scrap correctly in terms of the provision of Notification No. 52/2003-Cus, read with the provisions of import-export and the SION Norms.
Submissions
Counsel for the appellant submitted that the doubt raised by the Commissioner (Appeals) in the impugned order is for verification of the nature of scrap.
He pointed out that the Commissioner is not sure if the brass scrap imported by the appellant contains iron, steel, rubber, plastic etc., or not.
He is essentially seeking confirmation if the import is covered by the description “brass scrap with impurities”. The Commissioner (Appeals) has held that the normal brass scrap or “honey” scrap is pure brass scrap.
Decision
The two member bench of Raju Member (Technical) And Somesh Arora Member (Judicial) noted that the view of the Commissioner is that, in case the imported scrap is in the nature of “Honey Scrap” then there cannot be any waste coming out of the said scrap and the stage of segregation available in terms of the letter dated 04.05.2011 of the Foreign Trade Development Officer communicating the decision of norms committee cannot be applied.
It was further noted that the Commissioner was of the opinion that the benefit of segregation can be allowed only if the imported scrap contained impurities like iron, rubber, plastic, steel etc.
The Tribunal Directed that the original Adjudicating Authority will examine the applicability of the circular, and any other circular issued on the subject to the remand directions given in the impugned order and decide the issue a fresh.
Case title: Deep Recycling Industries v/s C.C.E. & S.T.-Rajkot
Citation: CUSTOMS Appeal No. 11510 of 2013