CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL CHANDIGARH REGIONAL BENCH - COURT NO. I Customs Appeal No. 59993 of 2013 [Arising out of Order-in-Appeal No. ASR-CUSTOM-PVR-APP-45-13-14 dated 15.07.2013 passed by the Commissioner (Appeals), Customs & Central Excise, Chandigarh-I]

M/s J S Steel Traders ……Appellant Amloh Road, M.C, Disposal Road, Mandi, Gobindgarh, Punjab-147301 VERSUS Commissioner of Customs, Amritsar ……Respondent Preventive Customs House, C.R. Building, The Mall, Amritsar, Punjab APPEARANCE:

Shri Saurabh Kapoor and Ms. Tanya Kumar, Advocates for the Appellant Shri Anurag Kumar, Authorized Representative for the Respondent CORAM: HON’BLE MR. S. S. GARG, MEMBER (JUDICIAL) HON’BLE MR. P. ANJANI KUMAR, MEMBER (TECHNICAL)

FINAL ORDER NO.60233/2026 DATE OF HEARING: 19.02.2026 DATE OF DECISION: 09.03.2026 P. ANJANI KUMAR:

M/s J.S. Steel Traders, the importers imported 99.120 MT of cargo, declared as "Heavy Melting Scrap" (HMS), classified under Customs Tariff Heading (CTH) 72044900, vide Bill of Entry No. 9767180 dated 04.04.2013; the consignment was imported in 4x20' containers from M/s A.W. Parker’s Enterprises, Australia at a declared assessable value was Rs. 22,25,199 and duty payable of Rs. 3,75,044. Examination of the cargo was conducted on 10.04.2013, by the officers in the presence of the Customs House Agent (CHA); it was revealed that while 64.780 MT of the consignment was HMS, the remaining 35.000 MT was found to be "old and used gas cut drill pipes" of varying lengths (7 to 12 feet) and diameters (4" to 8"). It appeared to the Revenue that the imported goods i.e. "second-hand goods”, are liable for confiscation being mis-declared, imported in violation of Para 2.17 of the Foreign Trade Policy (FTP) and that the appellant was liable to penalty. Additional Commissioner, vide Order-in-Original, dated 16.05.2013, confiscated the 35.00 MT of old and used pipes; gave an option to redeem the goods on payment of a fine of Rs. 1,30,000 and imposed a personal penalty of Rs. 80,000. On an appeal filed by the appellants, Commissioner (Appeals), Chandigarh, vide Impugned Order, dated 15.07.2013, upheld the decision of the adjudicating authority. Hence, this appeal.

2. Shri Saurabh Kapoor, Learned Counsel for the appellants, reiterates the grounds of appeal. He submits that the imported cargo is no drill pipes as alleged; the goods are not suitable for use as drill pipes and are fit for recovery of metal by melting; even though the photographs were shown the adjudicating authority as well as Commissioner (Appeals) accepted the conjectures of the Department; they cannot be classified as drill pipes under 7304.21 as they were not of normal length of 10 meters and were not having male and female conical heads on both ends; therefore, the impugned goods are scrap and there is no violation of FTP. He submits that the impugned goods are HMS and not pipes; clarification by the Commissioner of Customs, Amritsar (dated 15.01.2013) supports their case; the provisions of statute cannot be assumed; more so, when the expert confirmed the declared classification. He relies on the following cases:

 Durgapur Steel – 2001 (132) ELT 784 (Tri. Kolkata)

 MTC Business Pvt. Ltd. – 2012 (275) ELT 462 (Tri. Mumbai)

 Ship Chains – 2003 (156) ELT 458 (P &H)

 Shiva Ispat Udyog  Global Shiptrade Pvt. Ltd. – 2002 (142) ELT 152 (Tri.)

 G.H. Shaikh – 2002 (142) ELT 152 (Tri.) and 2010 (254) ELT

297 (Tri. Kolkata)

3. Learned Counsel further submits that no adverse inference could be drawn against the appellant if the goods are of the type not mentioned in ISRI Code or in VIS; every scrap which is not covered by ISRI cannot be held to be serviceable goods. Subsequent import of identical goods, declared as heavy melting scrap of drilling pipes, vide Bill of Entry No.2865033 dated 31.07.2013, by the appellants, were cleared by the authorities without any question. He would submit that as the goods are not liable for confiscation, redemption fine cannot be