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Issues involved: Classification of imported goods under Customs Tariff Heading, confiscation under Section 111(d) of the Customs Act, assessable value determination.
Classification of imported goods: The appellant imported Heavy Melting Scrap and cut pieces of 'old/used serviceable welded pipes'. Customs Authorities proposed to classify the pipes under Heading 7306.50 instead of 7204.99 as claimed by the appellant due to import policy restrictions on old/used goods. Confiscation under Section 111(d): The Commissioner ordered confiscation of 259.14 MTs of imported goods under Sections 111(d) and 111(m) of the Customs Act, with an option for redemption on payment of a fine and imposition of a penalty. Assessable value determination: The Commissioner enhanced the assessable value based on the classification of the goods as serviceable old and used pipes, rather than 'scrap', leading to a penalty and fine. The appellant contended that the imported pipes should be classified as 'scrap' under Heading 7204.99, not as serviceable pipes. The Commissioner's order was based on the assertion that the pipes were serviceable despite being old and rusty, as per the examination report. The Tribunal disagreed with the Commissioner's classification, stating that rusty and old pipes cannot be considered serviceable. Lack of evidence supporting the claim that the pipes were serviceable led to the acceptance of the appellant's classification under Tariff Heading 7204.99. Given the correct classification of the goods, the Tribunal found it unnecessary to address other issues raised in the appeal, such as the rejection of transaction value and the assessable value enhancement. The decision to set aside the impugned order and allow the appeal was based on the revised classification of the imported goods.
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