2018 (10) TMI 666 - AT - Customs

Mis-declaration of imported goods - Heavy Melting Scrap - It appeared to revenue that the goods were of prime quality - Confiscation of goods alongwith redemption fine - Held that - The goods imported were referred to as Heavy Melting Scrap in the country of export. Further, the Pre-shipment Inspection Certificate also was to the same effect - The learned Original authority has accepted that the imported goods were for the purpose of melting and therefore, we do not find his decision to alter the classification claimed by the appellant to be sustainable. Once it is held that classification was not to be altered then the question of redetermination of value did not arise - Appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of imported goods, valuation aspect, change in classification, duty payable.

Classification of imported goods: The appeals arose from a common impugned Order-in-Original passed by the Commissioner of Central Excise & Customs, Noida, concerning the imported Heavy Melting Scrap. The officer found additional goods like Sheets, Plates, and Strips in the consignment, leading to a change in classification and revision of self-assessment duty. The importer contended that the goods were to be consumed for melting, supported by the Pre-shipment Inspection Certificate certifying them as Heavy Melting Scrap. The Tribunal found the original authority's decision to alter the classification unsustainable, as the goods were intended for melting, rejecting the revenue's appeal.

Valuation aspect: The revenue contested the valuation aspect and requested a remand to the original authority for redetermination of value. However, the Tribunal, after considering the contentions and records, concluded that since the classification was not altered, there was no need for redetermination of value. The Tribunal rejected the revenue's appeal, emphasizing that the classification and value determination were intrinsically linked.

Change in classification: The Tribunal found no merit in the change in classification and the subsequent change in the rate of duty imposed on the imported goods. They noted that the goods were certified as Heavy Melting Scrap in the country of export and the purpose of import was for melting, rendering the alteration in classification baseless. Consequently, the Tribunal restored the original classification, rate of duty, and duty payable as per the self-assessment, setting aside the impugned order.

Duty payable: Ultimately, the Tribunal allowed the appeal filed by the importer and dismissed the appeal filed by the revenue, maintaining the original classification and duty payable as per the self-assessment. The judgment highlighted the importance of aligning classification with the intended use of the imported goods and emphasized the necessity of expert opinions and certificates in determining the nature of the goods for accurate valuation and classification.