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Issues Involved: Alleged mis-declaration of imported Heavy Melting Scrap (HMS) leading to confiscation u/s 111(m) and imposition of redemption fine and penalty u/s 112.
Summary: The Appellant purchased HMS from M/s. Shubhkaran & Sons, with a portion alleged to be re-rollable scrap. The adjudicating authority confiscated the goods u/s 111(m) for mis-declaration, imposing a redemption fine of Rs. 1,40,000/- and penalty of Rs. 70,000/-. The Commissioner (A) upheld the confiscation but reduced the fine and penalty, considering the appellant's intended use for melting. In para 12 of the impugned order, it was found that the appellant intended to use the re-rollable scrap for melting, indicating no mens rea for mis-declaration. The Tribunal cited precedents where scrap containing various goods remains usable as scrap, not in its original form, establishing a trade practice. Consequently, the appeal was allowed, setting aside the confiscation and penalties. This judgment highlights the importance of intent and trade practices in cases of alleged mis-declaration of imported goods, emphasizing the usability of scrap materials for specific industrial purposes.
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