2002 (3) TMI 753 - AT - Customs

Summary

Issues:
Classification of imported Brass scrap under 'Drink' or 'Honey' grade, Mis-declaration, Confiscation of goods, Penalty imposition, Validity of DEPB license, Technical expertise of certifying individuals.

Classification Issue:
The appellants imported Brass scrap declared as "Mixed Irony Brass scrap as per ISRI 'Drink'." The examination confirmed the goods matched the description but contained 18.5% Iron, leading to a dispute over classification as 'Drink' or 'Honey' grade. The Commissioner classified it as 'Honey,' enhancing its value. However, the tribunal found the presence of Iron contradicted the 'Honey' grade requirements, thus rejecting the Commissioner's decision.

Mis-declaration Issue:
The appellant argued that the higher Iron content did not result in any benefit due to Iron's lower value compared to Copper. The tribunal held that this did not amount to mis-declaration, especially considering the importer's possession of valid DEPB licenses. The confiscation under various sections of the Act was deemed premature and not justified.

Confiscation and Penalty Issue:
The Commissioner's decision to confiscate the goods, impose a penalty, and permit redemption on a fine was challenged. The tribunal found no grounds for confiscation under the relevant sections of the Act, highlighting the premature nature of the confiscation and lack of benefit derived from the alleged mis-declaration.

Validity of DEPB License Issue:
The appellant's possession of DEPB licenses was crucial in determining the legality of the import. The tribunal noted that the presence of valid licenses indicated the import was covered, even if a wrong declaration was made regarding the Iron content, which did not result in any undue advantage.

Technical Expertise Issue:
The reliance on Panchas lacking technical expertise, as opposed to Deputy Commissioner and Chemical Experts, was criticized. The tribunal found this reliance to be erroneous, further weakening the Commissioner's decision. Ultimately, the tribunal set aside the order, allowing the appeal with consequential relief.