1993 (4) TMI 148 - AT - Customs

Summary

Issues:
1. Appeal against Order-in-Appeal regarding confiscation of copper scrap and penalty imposition.
2. Dispute over the classification of imported copper scrap and excess weight found.
3. Compliance with statutory requirements for pre-mutilation before clearance.
4. Interpretation of the Gujarat High Court judgment on pre-mutilation.
5. Justification for the confiscation of 5 M.T. of copper scrap and 290 kgs. of excess scrap.
6. Assessment of intent, duty payment, and mala fide in relation to excess scrap found.

Analysis:
The appeal was filed against the Order-in-Appeal confirming the confiscation of 5 M.T. of copper scrap and 290 kgs. of excess scrap, with a penalty imposed on the appellants. The dispute arose from the objection that the imported copper scrap did not meet the definition of scrap due to the length of the copper pipes and the excess weight found. The appellants argued that they had complied with the statutory requirement of pre-mutilation before clearance, citing the Gujarat High Court judgment on the matter. They contended that the excess weight was minimal and unintentional, with duty already paid on the imported goods as per the supplier's communication. The respondents, however, maintained that the scrap did not meet the requirements at the time of importation and that excess weight was not a usual occurrence in scrap imports.

The Tribunal analyzed the submissions and records, noting that the appellants had voluntarily pre-mutilated the scrap under Customs supervision before clearance, in line with the Gujarat High Court decision. The Tribunal held that the confiscation of 5 M.T. of copper scrap was not justified and set it aside. Regarding the excess 290 kgs. of scrap, the Tribunal acknowledged that it was a small percentage of the total import and found no mala fide intent. While upholding the confiscation of the excess scrap, the Tribunal reduced the redemption fine to Rs. 1000, considering the duty element and absence of mala fide. The decision aimed to balance the unintentional lapse with a proportionate penalty, maintaining the order of authorities on the excess scrap while providing relief on the confiscation of 5 M.T. of copper scrap.