V. Rajamanickam, Member (T) - (1.) THE following appeals have been filed against the order of the Collector of Customs (Appeals), Bombay by the Revenue :- JUDGEMENT_2950_TLCE0_19900.htm Along with the three main appeals, Supplementary Appeals No. C/A.No. 2658/90-B2, C/2663/90-B2, C/2664/90-B2, and C/2665/90-B2 along with COD Nos. 256 to 259/90-B2 have been filed. Since the main appeals have been filed within time, the appellants have requested for the condonation of delay in the late filing of the Supplementary Appeals. THE delay in filing the Supplementary Appeals is, therefore, condoned. THE issues being similar in all three appeals and the Respondents being common, the appeals are taken up for decision and a common order is passed.
(2.) The issue involved is the classification of "HSK-4 Electric Resistance Wire" whether under Heading 73.15 (1) or 73.15 (2), C.T.A. The brief facts are M/s. Kinjal Electricals Pvt. Ltd. have imported consignments of "HSK-4 Electric Resistance Wire", ferrous Base, Bright quality from Japan. As per the test certificate from the suppliers the following was the composition of the item :- JUDGEMENT_2950_TLCE0_19901.htm The goods were assessed as stainless steel wire under Heading No. 73.15 (2) read with Notification No. 259/82, the Respondents have claimed assessments under Heading 73.15 (1) read with Notification No. 112 dated-16-4-1982. The assessment claimed and consequential refund was rejected by the Assistant Collector which however was allowed on appeal before Collector (Appeals). The Revenue has contested the order of the Collector (Appeals), hence this appeal.
(3.) THE Collector (Appeals) has gone by the fact that the aluminium content in the imported resistance wire is 3.43% and nickel content is 0.016%. As per the ISI 6525-1972, for stainless steel wire, the maximum permissible limit of aluminium content for the wire should be 0.03% with tolerance variation of + .05% and in these cases of import the aluminium content is much more than 0.3%, the wire does not conform to the ISI Specifications for the stainless steel wire and hence classifiable under Heading 73.15 (1) C.T.A. THE department has pointed out that wire contained 20.03% Chromium and is covered by the definition of stainless steel in the ISI as well as Para 242 (2) (v) of the ITC policy book 1983-84. Further, they have indicated in their grounds of appeal that having 12 to 14% or more chromium and 3.5 to 4.5% of aluminium is often used as electrical resistance alloy and has been accepted by American Iron and Steel Institute as stainless steel and is given trade number 406. Thus addition of aluminium alone cannot be a criterion to decide whether it is stainless steel or not, when the universal definition does not exclude any alloying element and merely prescribes the minimum chromium content. THEy have further contended that the property of corrosion resistance characteristic of stainless steel depends on the presence of chromium and it is generally accepted that this property becomes pronounced when chromium content in the steel reaches 12% or above. By adding aluminium alloy in higher percentage, it does not reduce the corrosion character of stainless steel. THEy therefore plead that the original assessment of the Asst. Collector has to be restored.;