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Issues: Mis-declaration of goods, differential duty, confiscation of goods, penalty imposition, compliance with testing directive, confirmation of goods quality.
The judgment involves a case where the importers purchased CRCO Silicon Steel Coils on high sea sale basis, declaring them as "Rolled/ Defective Grade" at a unit price of US $920 PMT C & F. Customs examination revealed the goods to be of prime grade, leading to a proposed increase in value to US $1150 PMT CIF, resulting in a differential duty of Rs. 3,35,151/-. Mis-declaration and non-compliance were alleged, with the importers contesting the prime grade assessment based on manufacturer certificates attributing the goods to a defective grade. The Commissioner, after examining invoices and faxes, refused to rely on them due to contradictions, confiscating the goods, confirming the differential duty, and imposing a penalty. The importers appealed, seeking waiver of pre-deposit for the penalty and requesting samples to be tested at a reputed laboratory. The Tribunal directed the samples to be tested at the Central Revenue Control Laboratory (CRCL) after noting a similar direction by another bench in a previous case. Despite non-compliance, the department was given another chance to pursue the testing directive. An application for early hearing was made, referencing a test report from CRCL that did not provide a clear opinion due to the absence of standard specifications. Subsequently, a letter from the Custom House confirmed the goods as prime based on the CRCL director's re-confirmation. However, the Tribunal noted discrepancies in the director's letters, with the earlier one not explicitly declaring the goods as prime quality. The subsequent letter referred to conformity with IS specifications but raised concerns about the applicability of the standards to the contested goods. The Tribunal found the Customs' assessment lacking detailed scrutiny and accepted the importers' declaration in the absence of adequate contest, allowing the appeal with consequential benefits.
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