2006 (4) TMI 407

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..... appeal is directed against Order-in-Appeal dated 28-2-2005 which upheld the Order-in-Original as regards confiscation of scrap, reducing the penalty on the appellants. 2. The issue which arises for consideration is whether the scrap generated when the Barges which were purchased by the appellants were repaired at a place which is notified in the Customs area and the scrap generated thereon clea .....

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..... g the process of repair cannot be confiscated as it was not the issue before the adjudicating authority nor before the Commissioner (Appeals). 4. Learned D.R. on the other hand submits that the show cause notice proposed to confiscate the Barges, and on the other hand it is very clear that 40 M.T. waste and scrap which was generated by repairing the said Barges is only sought to be confiscated a .....

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..... Barges, if they are not bought in for ship breaking purposes. Since the Barges are availing the benefit of Notification No. 21-2002-Cus. generated by repairing the said Barges would fall under the category of imported goods as defined under sub-section (25) of Section 2 of the Customs Act, 1962. Since the duty has not been discharged on such waste and scrap the said waste and scrap are liable for .....

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