2017 (3) TMI 488 - SC - Customs

Benefit of N/N. 21/20102- Cus - denial on the ground that the goods which were imported are Used Rails in the guise of Heavy Material Scrap - Held that - the respondents themselves accepted that what was in fact imported was used Rails and not Heavy Material Scrap. The respondents even went to the extent of admitting the mis-declaration of the goods as Heavy Material Scrap - the findings of the Tribunal in the impugned order treating, the goods as Heavy Material Scrap and not Rails are clearly erroneous - appeal allowed - decided in favor of appellant.

Summary

Issues: Classification of imported goods under Custom Tariff, Benefit under Notification No. 21/2002-Cus (Sl. No. 200), Mis-declaration of goods as "Heavy Melting Scrap" instead of "Rails," Tribunal's decision on classification of goods.

Analysis:
The judgment pertains to a case where the appellant received a report indicating that goods declared as "Heavy Melting Scrap" were actually "Used Rails." Consequently, an Order-in-Original was passed classifying the goods under a different heading and denying the benefit under Notification No. 21/2002-Cus (Sl. No. 200). The respondents appealed to the CESTAT, which classified the goods as "Heavy Melting Scrap" under a specific heading, contrary to the appellant's findings. However, the Solicitor General highlighted a letter from the respondents admitting the mis-declaration of the goods as "Heavy Material Scrap" and requesting to correct the value. The Supreme Court found the Tribunal's classification erroneous based on the respondents' admission and allowed the appeals, setting aside the Tribunal's decision and restoring the Assessing Officer's order. No costs were awarded in this matter.