2018 (5) TMI 687 - AT - Customs

Mis-declaration of imported goods - allegation in the present case is that the appellant has declared the imported goods as Alloy Steel Melting Scrap . But amidst the declared melting scrap, the examination by Customs Officers revealed that Grinding Media Balls were found which were new and unused - Held that - for purposes of assessment of imported goods, the examination of goods at the port in India is more relevant. Hence, we are inclined to give more credence to the opinion of the experts obtained locally. The three experts commissioned by Customs has unanimously opined that the impugned goods were new Grinding Media Balls . Sh. I.P.S. Arora, Chartered Engineer who has originally given a contrary opinion, has during cross-examination, retracted his original view. The order passed by the lower authority, who has gone by the majority of the opinions, merits no interference. Appeal dismissed - decided against appellant.

Summary

Issues:
Mis-declaration of imported goods as Alloy Steel Melting Scrap, Classification of goods as Grinding Media Balls, Reliance on expert opinions, Pre-inspection certificate vs. local examination, Retraction of expert opinion, Cross-examination of experts, Re-determination of value post mis-declaration.

Analysis:
The case involved the mis-declaration of imported goods as Alloy Steel Melting Scrap when 'Grinding Media Balls' were found during examination, attracting a higher rate of duty. Various experts, including a Chartered Engineer and production managers, provided conflicting opinions on the nature of the goods. The Chemical Examiner's report was inconclusive, while the National Test House found the balls did not meet IS standards. The Customs Department issued a show cause notice leading to an Order-in-Original upholding mis-declaration, reclassification, and imposing penalties.

The Commissioner (Appeals) initially set aside the order, but it was remanded by the Tribunal for denovo decision. In the subsequent proceedings, the Order-in-Original was restored, prompting the present appeals. The appellant argued based on pre-inspection reports and expert opinions supporting the goods as scrap. However, the Revenue argued that the goods were new, meant for sale in India, and concealed within the scrap consignment, justifying mis-declaration charges.

The Tribunal considered the local examination more relevant than the pre-inspection certificate, emphasizing the majority expert opinion that the goods were new Grinding Media Balls. The retraction of the Chartered Engineer's original view during cross-examination further supported this conclusion. The Tribunal upheld the Order-in-Original, citing the correct classification post-investigation and the necessity for re-determination of value due to mis-declaration.

In conclusion, the Tribunal upheld the impugned order, rejecting the appeals based on the evidence, expert opinions, and the mis-declaration of goods as determined through investigation.