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TMI Blog1998 (8) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... ace for which imported scraps is the main inputs. They had imported waste, heavy melting steel scrap and accordingly filed the Bill of Entry. On examination, the goods were found to contain 80% old, used and rusted pipes of different sizes and it was also observed that the ends of the pipes were not finished. The rest of the 20% scraps was bent and crushed in nature.The Commissioner of Customs, Kandla, after offering personal hearing to the CHA and the representatives of the importers, confiscated the goods with option to redeem the same on payment of fine Rs. 5 lakhs, holding that there was misdeclaration as goods were declared as scrap whereas they have been found out to be serviceable pipes for which licence is required under Para 24 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the value. He also relied upon the decision in the case of Tata Iron and Steel Co. Ltd. v. C.C.E. - 1995 (75) E.L.T. 3 (S.C.) in which it was observed that there are different grades of melting scraps viz. heavy, medium and light. He further observed that the technology has changed and in view of the development in the Iron and Steel Industry, the size factor could not always be the main criterion for the classification of Steel scraps. The ld. Counsel also placed reliance on the decision in the case of Amarson Woollen Mills v. C.C., Bombay - 1992 (61) E.L.T. 756 and in the matter of Panchamal Steel Ltd. v. C.C.E. - 1993 (68) E.L.T. 436 (T). Finally it was submitted that the benefit of doubt which is evident from the fact that no penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l authorities that such goods may be serviceable in India but for the purpose of exporting country they were regarded as scrap. The importers have moved application immediately after the examination of the goods for the mutilation of the goods. It is also observed from the Board s letter dated 16th June, 1995, that the Board after the examination of the matter in consultation with the Collector of Customs, Kandla intimated to the Chamber that whenever serviceable goods are noticed they are ordered to be mutilated/converted into scrap and the consignments are assessed as steel scrap. Taking into consideration the facts and circumstances of the case and the Board s letter dated 16th June, 1995, we are of the view that the Commissioner should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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