2008 (1) TMI 741

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..... consignments declared as 'Light Melting Scrap'. On examination of the cargo, it was found that the consignments comprised galvanized sheets, tin sheets, coils, metal strips, diesel engine parts etc. in addition to light melting scrap. In both the cases, the undeclared material other than scrap formed substantial part of the consignment. Show Cause Notices were issued alleging mis-declaration of description and value of the imported goods as well as import of the second-hand material (other than scrap) in contravention of the prohibition contained in the Foreign Trade Policy. The proposals were contested by the appellants. It was submitted that the materials alleged to be other than light melting scrap were also treated as scrap in the count .....

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..... ) in both the cases. The goods found to be light melting scarp were confiscated under Section 119 of the Act on the ground that they had been used to conceal goods found liable for confiscation. The Commissioner ordered redemption of the consignment on payment of Rs. 2.50 lakhs and Rs. 4.00 lakhs. The 7 containers used for transporting the consignment covered by the first Bill of Entry and 5 containers involved in the second consignment were confiscated under Section 118(a) of the Act treating them as packaging for the goods found liable for confiscation. These containers were allowed to be redeemed on payment of fine of Rs. 25,000/- in the first case and Rs. 20,000/- in the second case. The Commissioner also imposed penalties of Rs. 25,000 .....

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..... idered the facts of the case and the rival submissions. We find that there is no valid challenge to the Commissioner's finding of mis-declaration of description of galvanized sheets, tin sheets, metal strips, diesel engine parts etc. We also find that the Commissioner has determined the assessable value of these goods relying on accepted transaction value of similar goods. Once the allegation of mis-declaration was established the importer could not argue for accepting the declared transaction value as assessable value. The Commissioner had refused mutilation of these goods into scrap as the request of the importer in this regard was made after the offence of mis-declaration was detected Therefore, the Commissioner rightly rejected the requ .....

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