2017 (3) TMI 403 - AT - Customs

Quantum of redemption fine and penalty - the appellant imported certain consignments of scrap and declared the goods as Heavy Melting Scrap - Held that - As the goods found were not as per the declared quantity, but the same were used as melting scrap, therefore, the redemption fine and penalty imposed by the Commissioner (Appeals) are on higher side - redemption fine and penalty reduced - appeal allowed - decided in favor of appellant.

Summary

Issues:
Reduction of redemption fines and penalties on imported scrap goods.

Analysis:
In the case, the appellant imported scrap goods declared as Heavy Melting Scrap (HMS). Upon examination, it was found that the goods consisted of old and used pipes, re-rollable material, and heavy melting scrap. A chartered engineer's report indicated that a significant portion of the goods was re-rollable material, while the rest was HMS. The goods were held liable for confiscation, leading to duty demands and imposition of redemption fines and penalties on the appellants.

In Appeal No. C/156/2016, where re-rollable material was found in the declared HMS, the Commissioner (Appeals) reduced the redemption fine and penalty. The tribunal upheld this decision as appropriate, declining to interfere with the impugned order.

For Appeal No. C/157/2016 involving old and used pipes in the declared HMS, the tribunal noted that the goods were used as heavy melting scrap entirely. Consequently, the redemption fine and penalty were considered excessive and were reduced by the tribunal.

In Appeal No. C/158/2016, where re-rollable material was found in the declared HMS, the tribunal found the redemption fine and penalty imposed by the Commissioner (Appeals) to be appropriate, upholding the impugned order.

Regarding Appeal No. C/159/2016, where the declared quantity of old and used pipes exceeded the actual amount, the tribunal reduced the redemption fine and penalty, deeming the original amounts excessive.

In Appeal No. C/160/2016, where discrepancies were found between the declared quantity and the actual goods, the tribunal reduced the redemption fine and penalty, considering the goods were used as melting scrap. The tribunal deemed the original redemption fine and penalty amounts to be on the higher side.

Ultimately, the tribunal disposed of the appeals based on the specific circumstances of each case, making adjustments to the redemption fines and penalties after considering the nature of the imported goods and the discrepancies between the declared and actual quantities. The judgments were pronounced on 26.10.2016.