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Issues involved: Classification of goods under Customs Tariff Headings, re-fixing of values, confiscation of goods, imposition of penalty and redemption fine.
Classification of goods under Customs Tariff Headings: The appellant imported goods classified as "Heavy Melting Steel Scrap" but examination revealed unused nails and high-quality structural beams and channels. Lower authorities classified nails under Customs Tariff Heading 73170019 and beams/channels under 72169990, imposing duties accordingly. Adjudicating Authority re-classified the goods, revised their value, and confiscated them u/s 111(m) of the Customs Act, 1962. Tribunal remanded the case for a finding on mutilation of goods u/s 24 of the Customs Act. Adjudicating Authority again classified goods under the same headings, rejected declared values, and imposed penalties. Appellants challenged this order. Re-fixing of values: Appellant argued that the matter was remanded only for mutilation of goods, not re-classification or re-valuing. Cited previous Tribunal decisions supporting their case. Emphasized they contracted for heavy melting steel scrap, supported by pre-shipment inspection certificate. Departmental Representative contended that the goods contained serviceable items, not just scrap, and the certificate was not produced during filing of the bill of entry. Confiscation of goods and imposition of penalty and redemption fine: Tribunal found that the appellant contracted for heavy metal scrap, as evidenced by the purchase order terms and pre-shipment inspection certificate. Ruled in favor of the appellant based on previous Tribunal decisions and the factual matrix of the case. Directed the release of goods after effective mutilation as scrap, clearing them on payment of appropriate Customs duty as per declared values. Set aside the impugned order, stating no basis for confiscation, penalty, or redemption fine. Conclusion: The Tribunal allowed the appeal, directing the release of goods after mutilation as scrap and clearing them based on declared values. Set aside the impugned order, finding no justification for confiscation, penalty, or redemption fine.
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