2012 (3) TMI 414 - HC - Central Excise

Summary

Issues involved: Mis-declaration of goods, determination of quality of imported goods, appeal against order of Customs, Excise and Service Tax Appellate Tribunal.

Mis-declaration of goods:
The Revenue challenged an order by the Tribunal regarding the mis-declaration of goods imported by the assessee. The Revenue contended that the goods were of prime quality and there was a clear case of mis-declaration of their value. However, both the adjudicating authority and the Tribunal concluded that the goods in question were not of prime quality but were seconds/rejects. The court found that this issue did not raise any substantial question of law and was a matter of fact. The court noted the absence of a chemical examiner's report to prove the quality of the goods and mentioned an expert opinion indicating that the goods were sub-standard. Consequently, the appeal on this issue was dismissed, and the Revenue was directed to pay costs to the A.P. State Legal Services Authority.

Determination of quality of imported goods:
The case involved the import of Copper Clad Laminates (CCL) by the assessee on multiple occasions. The Revenue issued a show cause notice proposing confiscation of goods imported under specific Bill of Entry numbers and demanding differential duty. Subsequently, a show cause notice was issued to the assessee for rejecting the transaction value of certain consignments and to re-determine the value of the goods. The Commissioner of Customs and Central Excise, Hyderabad, concluded that the goods in question were not of prime quality, leading to the dropping of proceedings. The Tribunal rejected the Revenue's appeal against this decision, upholding the finding that the goods were seconds/rejects and not of prime quality.

Appeal against order of Customs, Excise and Service Tax Appellate Tribunal:
The Revenue appealed to the Tribunal challenging the decision regarding the quality of the imported goods. The Tribunal's order, which was the subject of this appeal, upheld the findings that the goods were not of prime quality. The High Court, after considering the arguments and evidence, affirmed the Tribunal's decision and dismissed the Central Excise Appeal. The court also ordered the Revenue to pay costs to the A.P. State Legal Services Authority within a specified timeframe.