2017 (1) TMI 1273 - AT - Customs

100% EOU - Mis-declaration of imported goods - Aluminium Paste/Flakes - it was found that out of six containers, five containers contained Unserviceable Transformer Scrap as declared. In the sixth container bearing Container No.CRXU-9064745, sealed Steel Barrels containing Aluminium Paste/Flake were found - Held that - the sixth container was imported with mis-declared goods for which the adjudication was done properly. Accordingly, consequence of adjudication does not call for any interference in absence of any cogent evidence led by appellant to the contrary - there is no ground to appreciate that the declaration was not contrary to law. When the testing laboratory made chemical analysis and that proved to be mis-declared goods as stated in this order, at the outset, there is no scope to intervene to the adjudication order passed by learned Commissioner - appeal dismissed - decided against appellant.

Summary

Issues:
1. Mis-declaration in the Bill of Entry
2. Mis-declaration of the value of imported goods
3. Eligibility of the importer to import Aluminium Paste/Flakes
4. Customs duty applicability on the imported goods

Analysis:
1. The case involved a situation where the importer filed a Bill of Entry for the import of Unserviceable Transformer Scrap and Mixed Metal Scrap. Upon examination, it was discovered that one container actually contained Aluminium Paste/Flake instead of the declared items. The labels on the barrels were obscured to conceal the true identity, indicating mis-declaration in the Bill of Entry.

2. The adjudicating authority raised concerns regarding mis-declaration of the value of the imported goods. The examination revealed that the actual contents of the container differed significantly from what was declared, with 66 packing units found in excess of the declaration. This discrepancy indicated a deliberate attempt to import mis-declared goods.

3. Another issue addressed was the eligibility of the importer, a 100% Export-Oriented Unit (EOU), to import Aluminium Paste/Flakes. The authority questioned whether the importer had the necessary authorization or compliance to import such goods, adding a layer of complexity to the case.

4. Lastly, the question of customs duty applicability on the imported Aluminium Paste was raised. The adjudicating authority found that the goods in question attracted customs duty, as indicated in the Show Cause Notice. Despite the appeal, the grounds presented did not provide sufficient evidence to challenge the findings of mis-declaration and subsequent adjudication.

In conclusion, the judgment upheld the findings of mis-declaration and the applicability of customs duty, dismissing the appeal due to the lack of substantial evidence to overturn the initial decision.