9911796707
|
Home
Issues:
1. Waiver of pre-deposit and stay of recovery in respect of Customs duty and penalty for imported wastepaper. 2. Denial of benefit of Customs Notification to the goods by the Commissioner. 3. Allegation of unauthorized import of contraries like plastic, metal, wood, rubber pieces in the wastepaper. 4. Prima facie case for the appellants based on the classification of goods and international standards for mixed wastepaper. Analysis: 1. The case involved an application for waiver of pre-deposit and stay of recovery concerning Customs duty exceeding Rs. 1.00 crore and an equal amount of penalty for imported wastepaper. The appellants had imported 'mixed wastepaper' from the USA under Customs Notification No. 21/2002, subject to actual user condition. The Commissioner denied the benefit of the Notification, demanded duty, and imposed a penalty after finding contraries in the imported material. 2. The Tribunal found a prima facie case for the appellants as the imports were made based on purchase orders for 'unsorted wastepaper,' declared as 'mixed wastepaper,' and classified correctly under the Tariff entry for concessional duty. No misdeclaration was observed, and international standards allow mixed wastepaper to contain contraries like plastic, wood, textile, glass, metal, and rubber pieces. A circular by the Ministry of Environment and Forests permitted such materials up to 8% in imported mixed wastepaper, leading the Tribunal to grant waiver of pre-deposit and stay of recovery for duty and penalty. 3. The department alleged unauthorized import of contraries in the wastepaper, leading to the issuance of a show-cause notice and the subsequent impugned order. The imported wastepaper was found to contain 11% contraries, including plastic, metal, wood, rubber pieces, among others. Despite some of the wastepaper being covered by licenses and notifications, the department initiated proceedings based on the presence of unauthorized contraries, which formed the basis of the show-cause notice and subsequent order. 4. The judgment highlighted the correct classification of goods, adherence to international standards for mixed wastepaper, and the permissible extent of contraries as per government circulars. The Tribunal's decision to grant waiver of pre-deposit and stay of recovery was based on the absence of misdeclaration, compliance with Tariff entry requirements, and the permissible presence of contraries in imported mixed wastepaper as per relevant regulations and standards.
|
