2005 (9) TMI 468 - AT - Central Excise

Summary

Issues Involved:
1. Mis-declaration of imported goods as plastic waste and scrap.
2. Classification and valuation of imported goods.
3. Compliance with Public Notice dated 1-1-1997.
4. Eligibility for duty exemption under Notification No. 133/94.
5. Request for mutilation of goods.
6. Imposition of duty, redemption fine, and penalty.

Detailed Analysis:

1. Mis-declaration of Imported Goods as Plastic Waste and Scrap:
The appellants were accused of mis-declaring imported goods as plastic waste and scrap. The Customs authorities found that the goods included useable rolls of plastic, which should have been classified separately under Heading 3921. The goods were not in conformity with the declared classification under sub-heading 3915.90 and were thus mis-declared.

2. Classification and Valuation of Imported Goods:
The goods were classified under Customs Heading 3921.90 instead of 3915.90. The Commissioner of Customs enhanced the value of the useable rolls based on the platt's price of LDPE plus manufacturing costs. The Tribunal noted that the transaction value declared by the appellants could not be accepted as the assessable value due to the mis-declaration. The Tribunal adopted the market value confirmed by panch witnesses and the appellants' representative for calculating the assessable value.

3. Compliance with Public Notice Dated 1-1-1997:
The appellants failed to comply with the conditions of the Public Notice 392(PN)/92-97, dated 1-1-1997, which regulated the import of plastic waste/scrap. The notice required that plastic waste/scrap be imported in specific forms such as compressed films in cut condition and pieces not exceeding 3" x 3". The appellants did not produce the required certificate from the factory where the waste was generated, and the goods did not conform to the specified forms.

4. Eligibility for Duty Exemption under Notification No. 133/94:
The benefit of duty exemption under Notification No. 133/94 was denied as the goods were found to be mis-declared and not in conformity with the conditions specified in the Public Notice and the permission granted by the Development Commissioner. The Tribunal upheld the denial of the exemption.

5. Request for Mutilation of Goods:
The Tribunal rejected the appellants' request for mutilation of the goods to convert them into plastic scrap/waste. The Tribunal held that such a request could not be entertained as the imports were not bona fide and were made with a false declaration. The Supreme Court precedents were cited to support this decision, emphasizing that mutilation offers could not be accepted to avoid confiscation when the import was fraudulent.

6. Imposition of Duty, Redemption Fine, and Penalty:
The Tribunal upheld the imposition of duty, redemption fine, and penalties by the Commissioner of Customs. The goods were confiscated for violation of Sections 111(d) and 111(m) of the Customs Act, 1962. The Tribunal directed the authorities to recalculate the amounts payable by the appellants based on the modified valuation.

Conclusion:
The Tribunal dismissed all the appeals, confirming the findings of mis-declaration, non-compliance with the Public Notice, and denial of duty exemption. The request for mutilation was rejected, and the imposition of duty, fine, and penalties was upheld with a directive for recalculating the amounts based on the modified valuation.