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TMI Blog2005 (6) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... or entry IGM was filed on behalf of the M.V. Arjun. Description of the Cargo of 1950 MT as Heavy Melting Scrap three Bills of Entry viz. Nos. 43, 44, 45 of date 16-2-98 were filed for clearance of the above said consignment on behalf of the importer M/s. Shree Electromelts Ltd., Bhavnagar (hereinafter referred to as Shree ). The cargo in the bill of entry was described as Heavy Melting Scrap and benefit of Notification No. 11/97 was claimed. 2.(a) Following an information of misdeclaration officers of Bhavnagar Customs carried out examinations of the cargo and found that it also consist of railway object transformers and other miscellaneous ship, railway repair yard scrap. The consignment was considered to be called as re-rollable s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghty, M/s. Shree Electromelts Ltd., M/s. Regency and the C.H.A., asking them to show cause as to why. (i) The entire Quantity of scrap as well as the vessel N.V. Arjun should not be ordered to be confiscated under Section 111(n) and under 111(f) and Section 115 respectively. (ii) Penalty under Section 112(b) not be imposed on M/s. Almighty and C.H.A. and penalty under Section 112(a) be imposed on Shree Ltd. (iii) The value declared on the B.E s not be increased to 163 P.M.T. cif for heavy melting scrap and to 185 for re-rollable scrap. (g) After considering the replies the present order now impugned in these proceedings was passed holding - (i) Heavy Melting Scrap and 400 mts re-rollable scrap for confiscation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shipping agent has to file the I.G.M. only as per the declarations on the Bill of Lading and other documents as made available by the shipping company or and the master of the vessel. (b) The total quantity of the goods have been found to be declared. A ship agent is not expected to know the nuances and difference between Heavy Melting scrap and Re-rollable scrap even if it is held that the shipping agents partner had accompanied the officers during the boarding formality on 18-2-98 and had an occasion to see on the ship and had observe railway tracks in the Cargo Holds. It cannot be considered that the partner and partnership firm as agents was aware to the contents imported and for a knowledge gained on 18-2-98. The penalty imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he amendment of the IGM and clearance of goods by others. We cannot uphold the imposition of penalty on Shree on these grounds. Once the surrender of the BE and it cancellation is accepted by the Proper Officer of Customs, the liability for import of such goods as covered by that BE cannot visit the person who has filed the BE expecting a favourable commercial import. Penalty on Shree is to be set aside. (e) The word entry made in Section 111(m) of Customs Act, 1962 of the Act refer to BE or postal declaration when read with Section 2(16) of the Customs Act, 1962. Therefore for the entry made in the IGM no. is liability to confiscation under 111(m) cannot arise. As regards liability under 111(f), the quantity entry is made and it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l cannot be upheld. (h) The Commissioner has enhanced the value declared on the BE s of Raghav and Reliance on the following findings - (i) The contemporaneous import price of melting scrap imported during December 97 January 98 at Customs House Mumbai is comparable quantities was USD 163 PMT cif. (ii) The declared price of USD 125 is not acceptable as transactional value under Rule 3(1) in view of the great difference in the declared price of contemporaneous imports given in the notice. (iii) The quantity of imports in prices cited by Almighty of USD 120 PMT cif is imports of lesser quantity of 142 MT 45 MT respectively and that is not comparable to imports in question. (iv) Domestic price of scrap is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 7 and Rule 7(a) valuation was not available valuation under Rule 8 was to be resorted. He therefore compares the price from the Scrap imported from Austria Belgium at a available of USD 163 PMT and be accepted under law for the 1450 MT of heavy melting scrap and USD Rule 185 for 400 MT of re-rollable Scrap. The valuation arrive at by the Commissioner cannot be upheld. Rejection of the transaction value established in the case were the scrap material is being melting case there are vast difference in the price declared on the price observed for different levels of imports from other countries. Scrap being a commodity whose valuation consideration cannot be compared. The valuation of scrap and its casting would be different in different ..... X X X X Extracts X X X X X X X X Extracts X X X X
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