2020 (1) TMI 435 - AT - Customs

Mis-declaration of imported goods - allegation that the appellant was trying to import Aluminium Alloy Ingots in the garb of Aluminium Scrap Throb - HELD THAT - The goods stands described in the export invoice as Aluminium scrap and as per the definition of Aluminium scrap, the goods should be remelted into some shapes for the convenience of shippings - Merely because the high Aluminium contents have been found in the goods, the same will not convert the scrap into the Aluminium ingots. There are no reasons to uphold the impugned orders in view of the facts that the goods stands described in the various import documents as Aluminium Scrap Throb and there is no evidence to rebut the said description given by the exporter. Appeal allowed.

Summary

Issues:
1. Classification of goods - Aluminium Scrap or Aluminium Alloy Ingots
2. Confirmation of demand of duty, interest, and penalties

Analysis:
1. Classification of goods - Aluminium Scrap or Aluminium Alloy Ingots:
The appellant filed a Bill of Entry for clearance of goods declared as Aluminium Scrap 'Throb'. Revenue conducted searches suspecting the importation of Aluminium Alloy Ingots under the guise of Aluminium Scrap. After physical examination and analysis by the Central Revenue Control Laboratory, it was concluded that the goods were Aluminium Alloy Ingots. The appellant argued that the goods were correctly declared as Aluminium Scrap 'Throb' as per ISRI guidelines. The Tribunal noted that the high Aluminium content alone does not convert scrap into ingots. Since the goods were described as Aluminium Scrap 'Throb' in import documents and no evidence rebutting this description was presented, the Tribunal set aside the impugned orders, ruling in favor of the appellant.

2. Confirmation of demand of duty, interest, and penalties:
Proceedings were initiated against the appellant for confirmation of duty demand, interest, and penalties amounting to ?1,40,728. The Original Adjudicating Authority passed an order confirming these demands, which was upheld by the Commissioner (Appeals). However, the Tribunal, after considering the description of goods in the import documents and the lack of evidence contradicting it, allowed the appeal, setting aside the impugned order and providing consequential relief to the appellant. The Tribunal's decision was based on the finding that the goods were correctly declared as Aluminium Scrap 'Throb', as per the import documents, despite the high Aluminium content.

In conclusion, the Tribunal's judgment in the case revolved around the classification of goods as either Aluminium Scrap or Aluminium Alloy Ingots. The Tribunal found in favor of the appellant, setting aside the demand of duty, interest, and penalties based on the description of goods in the import documents and the absence of evidence proving otherwise.