The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) waived the condition to furnish Bank Guarantee equivalent to 30% of the value of Crgo Scrap and Empty Cylinder while allowing provisional release.
On receiving intelligence that the importer is indulging in importing old used CRGO sheets/coils and old & used gas cylinders by way of concealment/misdeclaration in the guise of the consignment of Heavy Melting Scrap (HMS) falling under CTH 72044900 at Ludhiana Port, an alert was issued for examination of the consignments in the presence of DRI officers.
The importer, though had declared the goods as “Heavy Melting Scrap ISRI Code 200 to 206”, the goods on examination were found to be “old and used CRGO (secondary Cold Rolled Grain Oriented) Sheets/old and used “empty gas cylinder” and “Table Tennis Rackets”.
According to Revenue, the import of old and used CRGO sheets and old empty gas cylinders (when imported without a license) are prohibited in India in view of the OM dated 9.11.2020 issued vide F.No. 01/89/180/MONI-5852/AM-03/PC 2 (A) PART-III/V of III/E- 2787. Further, as per the extant Steel and Steel Products (Quality Control) order issued by the Ministry of Steel under Bureau of India Standards Act, 2016, import of Cold Rolled Grain Oriented (CRGO) Electrical Steel is permitted inter alia, subject to the conditions that the goods shall bear Standard Mark under a license from the BIS and meet the quality parameters / technical requirements of Indian Standard. As per CBIC’s instruction dated 9.7.2014 issued under F.No. 450/71/2014-Cus IV, it is clarified that import of second/defective/old and used CRGO sheets, strips and coal is not permitted. The Technical Division, Ministry of Steel has issued an OM dated 13.10.2020 with regard to importing substandard and used oily CRGO laminations into the country.
The Coram of Judicial Member, Sulekha Beevi C.S. and Technical Member, P.V.Subbarao held that the importer having paid duty on the declared value and having accepted to pay the entire differential duty, we are of the considered opinion that in the interest of justice, the condition to furnish Bank Guarantee equivalent to 30% of the value of the goods requires to be waived. The impugned order is modified to the limited extent of setting aside the direction to furnish a Bank Guarantee of 30% equivalent to the value of the goods.
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