2003 (12) TMI 258 - AT - Customs

Summary

Issues:
1. Disallowance of benefit of Customs Notification No. 51/2000-Cus.
2. Confiscation of goods under Section 111(m) of the Customs Act, 1962.
3. Imposition of fine and penalty.

Analysis:

Issue 1: Disallowance of benefit of Customs Notification No. 51/2000-Cus.
The appellant imported non-alloy steel bars, rods, angles, shapes, and sections for export. The Customs authorities disallowed the benefit of Customs Notification No. 51/2000-Cus. on 90% of the consignment, categorizing it as 'second grade hot rolled non-alloy steel slabs'. The appellant contended that they declared all items correctly, and the Customs authorities did not accept the advance license produced by them. The appellant argued that the items were freely importable under Open General License (OGL) and they paid full duty at the appropriate rate. The Tribunal observed that the issue was a matter of interpretation rather than mis-declaration, citing a similar case where the High Court held that used MS pipes were not mis-declared as they were only melting scrap. Consequently, the Tribunal set aside the disallowance of the benefit of the Customs Notification.

Issue 2: Confiscation of goods under Section 111(m) of the Customs Act, 1962.
The Commissioner had ordered the confiscation of goods valued at Rs. 43,25,580 under Section 111(m) of the Customs Act, 1962, due to the alleged mis-declaration. However, the Tribunal found that there was no mis-declaration, as the goods were correctly described in all documents, including the bill of entry. The Tribunal referred to the judgment in the Patiala Castings Pvt. Ltd. case, where the High Court held that similar items were not mis-declared. Consequently, the Tribunal set aside the order of confiscation.

Issue 3: Imposition of fine and penalty.
In addition to the confiscation of goods, the Commissioner imposed a fine of Rs. 4.50 lakhs and a penalty of Rs. 45,000. The Tribunal, after considering the submissions from both sides and the facts of the case, concluded that there was no mis-declaration. Therefore, the Tribunal set aside the imposition of the fine and penalty, allowing the appeal in favor of the appellant.