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TMI Blog2013 (11) TMI 1430X X X X Extracts X X X X X X X X Extracts X X X X ..... 2008 passed by the Joint Commissioner. The Joint Commissioner has imposed penalty of Rs.9,00,000/- under section 112(a) of Customs Act, confiscated heavy melting scrap of 44.68 MT valued at Rs.9,21,128/-- under section 111(d) of Customs Act, 1962 and an option to redeem the same on payment of redemption fine of Rs.2,00,000/- under section 125 of Customs Act, 1962 was given to the appellant. 2. The main issue in this appeal is that heavy melting scarp of 44.68 MTs was imported by the appellant. On examination of the goods, they were found to be unshredded heavy melting scrap. These goods were imported through ICD, Garhi-Harsaru. Since these goods were not metallic waste and scrap, these were not allowed to be imported through ICD, Garhi-Har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om any inspection & certification agencies given in Appendix 5 to the effect that: (i) The consignment does not contain any type of arms, ammunition, mines, shells, cartridges, radio active contaminated or any other explosive material in any form either used or otherwise (ii) The imported item (s) is actually a metallic waste/ scrap/second/defective as per the intentionally accepted parameters for such a classification. (II) Copy of the contract between the importer and the exporter stipulating that the consignment does not contain any type of arms ammunition, mines, shells, cartridges, radio active contaminated or any other explosive material in any form either used or otherwise. b. Import of scrap would take place only through followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Export & Export Policy that the goods should be imported through designated ports and the goods have been dispatched by mistake through ICD, Garhi-Harsaru and the customs authority could have accorded approval for transfer to ICD, Delhi which was for clearance of scrap. He also stated that the Commissioner (Appeals) has failed to appreciate that amount of penalty, redemption fine was disproportionately harsh merely on the technical lapse of having imported scrap at ICD, Garhi-Harsaru which was unintentional and was curable defect. 6. We have also gone through the relevant para 5(ii) of Customs Circular No.56/2004 dated 18.10.2004, wherein it is clearly mentioned that import and clearance of metal scrap in unshredded compressed and loose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption fine of Rs.50,000/- and penalty of Rs.20,000/- has been imposed, but in the present case value is Rs.9,21,128/- but disproportionate redemption fine of Rs.9,00,000/- and penalty of Rs.2,00,000/- has been imposed. 9. Looking to the quantum of penalty and redemption fine, it is very harsh and disproportionate to the offence and thus on the higher side. In view the facts and circumstances of the case and also taking into account RF and penalty in other appeal, we feel interest of justice should be met if penalty is reduced to Rs.1.80 lakhs and redemption fine is reduced to Rs.1 lakh. 10. In view of the above modification, we partly uphold the order in appeal and partly accept the appeal in above terms. (Pronounced in the open court) X X X X Extracts X X X X X X X X Extracts X X X X
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