2003 (11) TMI 130 - AT - Customs

Summary

Issues: Misdeclaration of goods, Confiscation of goods, Imposition of personal penalty, Classification of goods, Value of goods, Addition of charges in assessable value, Benefit of exemption Notification

Misdeclaration of goods:
The appellants imported goods declared as "Silicon Steel Melting Scrap" but were found to be Silicon Electrical Steel Strips. The Customs Officers believed the goods required a specific license for importation and issued a show cause notice proposing confiscation and penalty. The Commissioner held the goods as 'Strips' and enhanced their value, leading to confiscation and penalty. The appellants argued that the goods were waste and scrap, not strips, citing the goods' condition and intended use for melting purposes.

Classification of goods:
The Commissioner classified the goods as 'Strips' under Heading 7226.19, contrary to the appellants' declaration of waste and scrap under Heading 7204.29. The appellants contended that the goods, being old and used, were not suitable for electric stampings and should be considered waste and scrap. The Tribunal, referencing a previous decision, agreed that the goods were waste and scrap, not requiring a license for importation.

Value of goods:
The Commissioner enhanced the value of the goods based on them being old and used strips, not waste and scrap. The appellants argued that the transaction value was correct, and there was no evidence to justify the enhancement. The Tribunal found no justification for the value enhancement and confirmed the transaction value as correct.

Addition of charges in assessable value:
The Tribunal confirmed the addition of High-Sea Sale Commission and Landing Charges in the assessable value of the goods, as uncontested by the appellants' advocate.

Benefit of exemption Notification:
The appellants claimed the benefit of exemption Notification No. 17/2001-Cus. The Tribunal held that since the goods were waste and scrap, the exemption would be available to the appellants, leaving the Revenue to consider the exemption at the time of implementing the order.

Conclusion:
The Tribunal set aside the impugned order, allowing the appeal in favor of the appellants. It determined that the goods were waste and scrap, not requiring a license for importation, and that the value enhancement was unjustified. The addition of charges in the assessable value was confirmed, and the appellants were granted the benefit of the exemption notification.