2004 (7) TMI 528 - AT - Customs

Summary

Issues:
- Discrepancy in declared commercial weight of imported goods
- Consideration of moisture content in determining commercial weight
- Dispute over duty payment and penalties imposed by Customs Authorities

Discrepancy in Declared Commercial Weight:
The appellant imported Nylon Flock tow and declared commercial weight for assessment, which was not accepted by Customs Authorities due to discrepancies in the invoices showing gross weight and commercial weight. The Customs Authorities conducted tests revealing 3-4% moisture content in the goods, leading to a differential duty demand and penalties imposed by the Commissioner.

Consideration of Moisture Content:
The appellant argued that the goods always contained moisture, supported by the supplier's letter stating 23-25% moisture content at the time of packing. The appellant contended that moisture was essential for maintaining the integrity of the tow and preventing entanglement. The Revenue deducted 3-4% moisture from the gross weight to determine the correct commercial weight, higher than the declared weight, justifying the duty demand.

Dispute Over Duty Payment and Penalties:
The Tribunal observed that while the Revenue did not dispute the moisture content declared by the manufacturer, they failed to provide evidence of the gross weight at clearance. The Tribunal noted the regular import of goods with accepted commercial weight by the appellant and the absence of evidence supporting the Revenue's calculation based on moisture content alone. Consequently, the demand based on commercial weight determined by Customs Authorities was deemed unsustainable, leading to the appeal being allowed, and the appellant entitled to any consequential relief as per the law.