2017 (6) TMI 747 - AT - Customs

Non-production of end-use certificate - import of melting scrap - demand - Held that - the appellants have recorded the receipt of the melting scrap in raw material account (Form IV register); RG23A Part I (quantity records maintained for .the receipt of inputs), RG23A Part Il (maintained for the amounts of duties paid on such inputs) and the heat register and the RT12 returns were categorically stating that they had received the melting scrap imported by them and consumed them in the manufacturing process - In the absence of any contradiction of the said records as produced by the appellant before the lower authorities, the impugned orders rejecting the said records as not sufficient and only the end use is required to justify the consumption of the melting scrap is not a correct appreciation of the fact - appeal allowed - decided in favor of appellant.

Summary

Issues:
Demand of duty for non-production of end-use certificate regarding melting scrap imported.

Analysis:
The appeal was against an Order-in-Appeal regarding the demand of duty from the appellant for melting scrap imported without an end-use certificate. The Tribunal noted it was the second round of litigation. In the first round, the Tribunal remanded the matter back to the adjudicating authority for fresh examination as the appellant claimed to have submitted the end-use certificate. The appellant then submitted various corroborative evidences like raw material register, returns, and records showing receipt and use of the melting scrap for manufacturing. However, the lower authorities did not appreciate these evidences and confirmed the duty demand. The Tribunal observed that despite clear evidences submitted, the lower authorities did not consider the evidentiary value of the records provided by the appellant. The records indicated receipt and consumption of the imported melting scrap in the manufacturing process. The Tribunal found that the lower authorities' rejection of these records as insufficient and insistence on the end-use certificate alone was incorrect. The Tribunal concluded that the appellant had demonstrated the consumption of the melting scrap as per the evidence presented, setting aside the impugned order and allowing the appeal.

In conclusion, the Tribunal held that the impugned order was unsustainable and set it aside, allowing the appeal in favor of the appellant. The Tribunal emphasized that the appellant had sufficiently demonstrated the consumption of the imported melting scrap in the manufacturing process through the records provided, indicating that the demand for duty due to non-production of end-use certificate was not justified. The Tribunal's decision was based on the evidentiary value of the records submitted by the appellant and the failure of the lower authorities to consider these records properly.