2008 (12) TMI 463 - AT - Customs

Confiscation and penalty - Import of heavy melting scrap - benefit of N/N. 83/2004 dt. 18-9-2004 - Held that - As is clear from the above, the entire documentary evidences on record reflect upon the fact that the imported goods were nothing but heavy melting scrap and there being no expert opinion to conclude against the appellant, we extend the benefit to them - appeal allowed.

Summary

Issues:
1. Misdeclaration of imported goods as heavy melting scrap.
2. Confiscation of goods and imposition of penalty based on misdeclaration.
3. Validity of pre-shipment inspection certificate.
4. Allegation of re-rollable scrap in the cargo.
5. Challenge regarding the usability of re-rollable scrap.
6. Comparison with relevant case laws.
7. Reliance on documentary evidence to prove the nature of imported goods.

Analysis:

1. The appellant imported goods declared as heavy melting scrap, but a physical examination revealed 30% re-rollable scrap. The Commissioner confiscated the cargo due to misdeclaration and non-compliance with the pre-shipment inspection certificate.

2. The Tribunal noted that the appellant couldn't be held liable for the certificate issued by an unregistered branch office, as the clarification regarding registration came after the import date. No war material was found, and the reasoning for confiscation was deemed invalid.

3. The second ground for confiscation was the presence of re-rollable scrap in the cargo. The appellant argued that re-rollable scrap could also be used as melting scrap, challenging the Revenue's stance based on physical examination without expert opinion.

4. The Tribunal referred to past cases where doubts about goods could be resolved through clearance after mutilation. The Commissioner's failure to enhance value despite acknowledging higher value of re-rollable scrap was noted, along with precedents emphasizing the treatment of goods as melting scrap in the absence of evidence.

5. The appellant presented various documents like bill of lading, invoices, and inspection certificates all indicating heavy melting scrap. With no expert opinion against the appellant and strong documentary evidence, the Tribunal ruled in favor of the appellant, setting aside the impugned order and allowing the appeal with consequential relief.

This detailed analysis of the judgment addresses each issue comprehensively, highlighting the arguments, findings, and legal principles involved in the case.