2018 (8) TMI 833 - AT - Customs

Mis-declaration of imported goods - import of old and used ingots alongwith heavy melting scrap - demand alongwith confiscation, redemption fine and penalty - Held that - The appellant admittedly purchased heavy melting scrap from another importer on high sea sale basis. The invoice of the supplier described the goods to be heavy melting scrap. Appellant have also taken a stand that the said scrap was purchased by them for actual use in their furnace and the entire consignment cleared by them has been subsequently captively used in the furnace as scrap - In the absence of any dispute to all the facts, no charge of mis-declaration can be upheld against the appellant. Appeal allowed - decided in favor of appellant.

Summary

Issues: Mis-declaration of imported goods, classification of goods, imposition of duty, penalty, and confiscation.

The judgment in the case involved the appellant importing heavy melting scrap, with a portion of the goods being identified as old and used ingots upon physical examination by the Revenue. This led to proceedings against the appellant for partially importing ingots classified under a different heading with a higher duty rate. The Original Adjudicating Authority confirmed a demand of &8377; 27,646/-, along with confiscation of the material and an option for redemption on payment of a fine of &8377; 80,000/-. Additionally, a penalty of &8377; 40,000/- was imposed. The Commissioner (Appeals) upheld this order, prompting the appellant to file the present appeal.

The appellant argued that they purchased the heavy melting scrap on high sea sale basis, with the supplier's invoice and pre-shipment certificate confirming the nature of the goods as heavy melting scrap. They contended that the entire consignment was intended for use in their furnace as scrap, which was supported by the evidence presented.

The Tribunal analyzed the facts and cited precedents to support its decision. Referring to the case of K.L. Concast Pvt. Ltd. vs. Commissioner of Customs, the Tribunal highlighted that old and used items in a scrap consignment should not be classified as primary goods. Another decision, Commissioner of Customs, Tuticorin vs. Harihar Alloy Castings Ltd., further supported this stance. Given the lack of dispute regarding the facts presented by the appellant, the Tribunal found no basis for upholding any charge of mis-declaration against them. Consequently, the impugned order was set aside, and the appeal was allowed with consequential relief.

In conclusion, the judgment addressed the mis-declaration of imported goods, the correct classification of goods, the imposition of duty, penalty, and confiscation. It emphasized the importance of factual accuracy in determining the classification of goods and upheld the appellant's position based on the evidence presented and relevant legal precedents.