Bombay High Court has dismissed a plea related to imported Rebar case filed against the CBEC (Central Board of Excise & Custom) order dated 7 Nov’14. The case was filed, when CBEC made BIS (Bureau of India Standards) norms mandatory on import of steel products from other countries.
Steel importers (especially Rebar) had filed a petition in Bombay High Court on 21 Nov’14 after their material was held by customs at Mumbai & Chennai Port due to non-compliance of BIS norms.
“The case today had the pronouncement of judgment by Bombay High Court comprising of Divisional Bench. Writ petition filed by importers at Bombay High Court, challenging the CBEC circular and praying for release of cargo, has now been dismissed by the court. Only concession the importers have is the permission to re-export the cargo,” Mr A. Amin, Advocate representing the All India Steel Rerollers Association, Mumbai & Chennai, told SteelMint.
This came as a big relief to the domestic steel manufacturers, who were continuously battling against rising import of Rebar from China. Earlier, a CBEC order dated 07 Nov’14 had ask all port authorities to give clearance to the any material based on BIS certificate.
What Next?
Importers can now appeal in the Supreme Court against the high court judgement. However, its acceptance may take a minimum of 2 months. Holding the material for 2 months will mean huge losses in terms of accumulated demurrage and deteriorating quality of the material. Importers will now look to re-export the material.
Total Imports of Bar & Rod till Oct’14
| Month | Alloy Steel | M-o-M | Non-Alloy Steel | M-o-M | Total | M-o-M |
| Apr’14 | 21,560 | 0 | 25,210 | 0 | 46,770 | 0 |
| May’14 | 32,070 | 49% | 34,580 | 37% | 66,650 | 43% |
| Jun’14 | 8,230 | -74% | 45,970 | 33% | 54,200 | -19% |
| Jul’14 | 14,380 | 75% | 73,090 | 59% | 87,470 | 61% |
| Aug’14 | 44,040 | 206% | 64,450 | -12% | 108,490 | 24% |
| Sep’14 | 23,490 | -47% | 131,500 | 104% | 154,990 | 43% |
| Oct’14 | 61,600 | 162% | 142,300 | 8% | 203,900 | 32% |
| Total | 205,370 | – | 517,100 | – | 722,470 | – |
Quantity in MT
Source: JPC, Ministry of Steel
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