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The appellant is in appeal against the impugned order.

2. Brief facts of the case are that appellant had filed bill of entry no. 7408164 dated 17.07.2012 through CHA M/s A.B. Agencies, Ludhiana for clearance of 331.73 MT of M.S. Turning & Boring, ISRI Code 2002 to 204 & 220 (hereinafter, the impugned goods) classifying the same under Tariff Item No. 72044900 of the Customs Tariff Act, 1975. The impugned goods were imported from Malaysia, declaring the transaction value of USD 360 PMT, the assessable value of which came to Rs. 66,96,370.93. The examination of the impugned goods was conducted under first check by the Shed Staff, appellants representative alongwith Chartered Engineer Sh. Anil Kumar Soni. As per inspection report dated 08.08.2012 of the Chartered Engineer, the impugned goods weighing 338.620 MT were mix of some quantity of MS Turning Scrap and majority of mill scale found loose in the containers, MS Turning Scrap was estimated to be 30% approximately of whole material and was suitable for melting purpose and the Mill scale was found to be 70% approximately of the whole consignment. Two samples of Mill scale were drawn and tested at Bali laboratories, Ludhiana, and as per their test report, iron content found to be different in both the samples i.e. 59.90% in 1st Sample and 23.70% in 2nd Sample. Hence the average iron content in Mill Scale was 42.50% approximately. As the lab report appeared to be inconclusive the Chartered Engineer recommended further testing. The Chartered Engineer in continuation of his earlier report dated 08.08.2012 submitted 2nd inspection report dated 04.09.2012 which stated that subsequent sample drawn by the Shed Staff was tested at SGS Laboratory, Porbander, Gujrat but the laboratory failed to give the clear report. The sample was again drawn and this time tested at United Solutions Pvt. Ltd., Khanna. The Laboratory vide report no. 2012090101 dated 03.09.2012 had described the chemical composition of the material as 1.29% of Carbon, 0.062% of Phosphorous, 0.044% of Sulphur and 60.07% of Ferrous and that material was having PH value in water as 8.90 which showed that the material was Alkaline in nature and as per the report the material was non-hazardous. As such the impugned goods weighing 338.620 MT were estimated to be Turning 30% i.e. 101.586 MT and out of the balance 70% i.e. 237.034MT, approximately 75% i.e. 177.7755 MT was iron powder and balance 25% i.e. 59.2585 MT was Turning. Hence, total turning in the consignment was approximately 101.586+59.2585 = 160.8445 MT.