2001 (8) TMI 168 - AT - Central Excise

Summary

Issues:
- Confiscation of goods and imposition of duty
- Imposition of personal penalty

Confiscation of Goods and Imposition of Duty:
The appellant imported waste and scrap of plastics, which were alleged to be misdeclared as they did not fully comply with the Public Notice restrictions. However, upon inspection, it was found that the goods were 'virgin plant waste' and the appellant sought permission for mutilation from the Development Commissioner. The samples tested confirmed the nature of the goods as waste, and the appellant's factory was in the Export Processing Zone under Customs control. The Tribunal noted that the goods were to be used for manufacturing goods for export, and it was common practice to allow mutilation of goods before clearance in case of disputes. As there was no violation of the Import Policy, the confiscation of goods was deemed unwarranted.

Imposition of Personal Penalty:
The Tribunal found that since the goods were determined to be 'virgin plant waste' upon testing, there was no misdeclaration. Therefore, there was no basis for imposing a personal penalty. Consequently, the Tribunal set aside the confiscation of goods and the personal penalty.

Conclusion:
The appeal was allowed, and it was directed that the goods be fully mutilated for export purposes without the demand for duty. The Tribunal emphasized that in cases where goods are to be converted for export, the duty demand does not apply. The decision highlighted the importance of compliance with Import Policy requirements and the allowance for mutilation of goods under certain circumstances.