2017 (9) TMI 1715 - AT - Customs

Misdeclaration of imported goods - import of Heavy Melting Scrap - Held that - In the instant case admittedly, the pipes in question were old and used and therefore, these pipes are in the nature of scrap only, as the same cannot be used as prime. In these circumstances, the declaration of the goods by the appellant is correct and therefore, no differential duty be demanded from the appellant. Moreover, as the goods are scrap, therefore, neither goods are liable for confiscation nor any penalty is warranted. Appeal allowed - decided in favor of appellant.

Summary

Issues:
Appeal against imposition of redemption fine, penalty, and demand of differential duty on import of Heavy Melting Scrap misdeclared as scrap and old pipes.

Analysis:
The appellant appealed against an order imposing redemption fine, penalty, and demanding differential duty on the import of Heavy Melting Scrap misdeclared as scrap and old pipes exceeding 5 ft in length. The Customs Authorities found the goods to include old and used pipes, leading to the conclusion of misdeclaration. The adjudicating authority enhanced the value of the goods, demanded differential duty, and imposed penalties. The appellant contended that the goods were correctly declared as scrap and old pipes, challenging the impugned order.

The appellant's counsel argued that the goods were found to be scrap and old pipes exceeding 5 ft in length upon examination, supporting the claim of correct declaration. The learned AR, representing the respondent, reiterated the findings of the impugned order, opposing the appellant's contentions. After hearing both parties and evaluating the submissions, it was observed that the imported goods comprised Heavy Melting Scrap and old pipes exceeding 5 ft in length. While pipes exceeding 5 ft were not considered scrap per ISRI standards, the old and used pipes in question were deemed scrap as they were not usable as prime material.

Consequently, it was determined that the appellant's declaration of the goods as scrap and old pipes was accurate, warranting no demand for differential duty. As the goods were categorized as scrap, they were not subject to confiscation or penalty. Thus, the impugned order was deemed lacking in merit and subsequently set aside. The appeal was allowed with any consequential relief, if applicable, in favor of the appellant.