2002 (12) TMI 342 - AT - Customs

Summary

Issues:
1. Misdeclaration of grade of imported copper scrap.
2. Confiscation of goods and imposition of penalties.
3. Interpretation of ISRI guidelines for Birch Grade and Dream Grade copper scrap.

Analysis:
The appellant imported copper scrap declared as "Dream Grade as per ISRI" but faced allegations that the scrap was actually of Birch Grade, leading to confiscation of goods and imposition of penalties. After remand, a sample test revealed copper content less than 90%, contrary to the earlier clean sample report. The appellant argued that the test on samples sent by Customs authorities showed lower copper content, indicating no misdeclaration. The Revenue contended that cleaning the sample revealed 96% copper content, accusing misdeclaration. The main issue revolved around determining if the imported copper scrap was Birch Grade or Dream Grade as per ISRI guidelines.

The ISRI guidelines define Birch Grade as unalloyed copper wire with 96% nominal copper content, while Dream Grade consists of unalloyed copper scrap with 92% nominal copper content. Post-remand sample tests showed over 95% copper content after cleaning, but less than 90% when tested as such. Considering the presence of oil, dirt, etc., the Tribunal concluded that the scrap in question aligned more with Dream Grade specifications. Therefore, the allegation of misdeclaration regarding the grade of scrap and valuation was deemed unsustainable. Consequently, the impugned order was set aside, and the appeals were allowed, favoring the appellant.