2007 (1) TMI 491 - AT - Customs

Summary

Issues: Mis-description of imported goods, Duty-free clearance entitlement, Confiscation, Penalty, Tariff value under Notification No. 52/2002

In this case, the appellant imported a consignment of brass scrap described as Mix Metal Scrap Mainly Brass, but it was found to be Brass scrap pale Grade upon investigation. The appellant, a 100% EOU, argued they were entitled to clear the scrap at nil duty rate and did not intend to evade duty as they ordered mix metal scrap but received brass scrap for actual use. They contended that since the scrap was freely importable and they were entitled to duty-free clearance, confiscation and penalties were unwarranted. The Tribunal noted the mis-description but accepted the appellant's claim of entitlement to duty-free clearance and lack of intent to mis-describe the goods. Consequently, the confiscation and penalties were set aside, while the enhancement of value was upheld under Notification No. 52/2002, dated 16-8-2002. The appeal was allowed, overturning the penalty and redemption fine, with the decision announced on 16-1-2007.