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TMI Blog1991 (7) TMI 229X X X X Extracts X X X X X X X X Extracts X X X X ..... x 10, Part-III, Serial No. 2 of AM 84 Policy. Pursuant to certain intelligence received in the Custom House to the effect that trade is importing Brass Scrap under the guise of brass dross, a case was registered and the matter was taken up for detailed investigation by Special Investigation Intelligence Department. The goods, on examination by the special investigation branch, were found to be 100% Brass Scrap in place of Brass Dross declared in the relevant documents. Department observed that there was an attempt to evade duty amounting to Rs. 1,79,112.45 Paise, being difference between duty chargeable on Brass scrap weighing 18,676 M/T at the rate of Basic Customs Duty at 85% + 35% auxiliary + additional duty at the rate of Rs. 3300/- p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicate that the appellants had ordered or managed the wrong supply of Brass Scrap in place of Brass Dross. He said that since the appellants are regular importer of Brass Scrap for the past several years and further heard about supply of wrong goods to some other importers, sufficient precaution was taken by them to ensure that the goods as ordered were supplied. He referred to the copy of the letter dated 11-11-1983 addressed to the Indenters asking for clarification about the consignment which is packed in 68 drums whereas in other suppliers' cases the goods are generally shipped in one container in 32 drums and such huge number of drums for packing the material was not required in their opinion. It was duly replied by Indenters that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of confiscation cannot sustain. He argued that mens rea is an essential ingredient for imposition of fine and penalties and since the said product was imported by the appellants on bona fide belief the penal action was not justified, relying upon the ratio of the decision in the case of Akbar Badruddin Jiwani v. Collector of Customs [1990 (47) E.L.T. 161 (S.C.)]. 5. As regards valuation, he said that Collector erred in taking the invoice value for the purpose of assessment of goods in question as the invoice value represents Brass Dross. The price of the Brass Scrap is cheaper than that of Brass Dross and at the material time another Importer M/s. S.B. Metal Co., imported another consignment of Brass Scrap at 41 Cents per Kilo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsation will not reveal exactly for what action they were compensated. He contended that since this is not a case of genuine supply and the imported goods are different from the description of the goods and there was a deliberate attempt to import high priced goods, the Departmental action was justified in ordering for confiscation of the goods. He cited the decisions in the case of International Watch Trading Company v. Collector of Customs [1989 (39) E.L.T. 285] and Fine Blanking Pvt. Ltd. v. Collector of Customs [1990 (48) E.L.T. 429]. 7. On point of valuation he submitted that there was no dispute of valuation before the Adjudicating Authority. The evidence adduced by the appellants before the Tribunal cannot be taken into considerati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case is whether the appellants have imported the goods knowingly with an intention to evade payment of duty to attract penal provisions. Sufficient evidence was brought on record by the appellants to show that it was mistake on the part of the supplier in sending the wrong goods which would clearly show that there was no intention on the part of the appellants. Not only the suppliers have admitted their mistake but also they compensated the appellants for discrepancies. Further nothing incriminating evidence was found against the appellants to implicate their involvement in importing the goods other than declared. The contention of the Department that supplier has been obliging in sending Brass Scrap in the guise of Brass Dross ..... X X X X Extracts X X X X X X X X Extracts X X X X
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