2002 (12) TMI 456 - AT - Customs

Summary

Issues:
1. Rejection of declaration of imported goods as scrap by the Commissioner of Customs, Chennai.
2. Dispute regarding the categorization of 81.61 MTs of imported goods as scrap.

Issue 1: Rejection of declaration of imported goods as scrap
The Appellant was aggrieved by the Order-in-Original No. 22/2000, where the Commissioner of Customs, Chennai rejected the declaration of imported goods as scrap and re-categorized them as Slates/Plates. The Commissioner imposed a fine of Rs. 1,70,000/- and a penalty of Rs. 20,000/-. The dispute arose as the Commissioner did not accept the report of the National Metallurgical Lab (NML), which certified the goods as bushelling scrap. The Commissioner argued that the goods were of uniform size and shape, suitable for use without melting, and categorized them as Slate/Plates due to the importer being a trader, not an actual user.

Issue 2: Dispute regarding categorization of 81.61 MTs of imported goods as scrap
The Counsel for the Appellant argued that the samples sent to NML confirmed the goods to be bushelling scrap, satisfying IS:2549:1994 in Clause 5.18. The Counsel highlighted a previous Order-in-Appeal where the Commissioner accepted NML's report categorizing the item as metal scrap. The Counsel emphasized that the Commissioner should not deny the expert opinion and should follow precedents. The Departmental Representative reiterated the Commissioner's stance that the size of the goods warranted categorization as Slates/Plates.

The Tribunal analyzed the submissions and found merit in the Counsel's arguments. It noted that the NML report should be accepted unless there is rebuttal evidence, which was lacking in this case. Referring to a similar case where the Commissioner's decision was rejected in favor of the NML report, the Tribunal upheld the claim of the Appellant to treat 81.61 MTs as metal scrap. However, as the Appellant did not contest 13.01 MTs of longer size, the matter was remanded to the Commissioner to re-determine fine and penalty for that portion. The Tribunal directed the Commissioner to adjudicate the matter within two months from the date of the order for the uncontested portion.

In conclusion, the Tribunal ruled in favor of the Appellant, upholding the classification of 81.61 MTs as metal scrap based on the NML report. The matter was remanded for re-determination of fine and penalty for the uncontested portion, emphasizing the need for expeditious adjudication by the Commissioner.