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TMI Blog2010 (10) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner has held the impugned goods to be steel pipes and enhanced the value rejecting the invoice value, confirmed the duty demand calculated on the enhanced value, confiscated the impugned goods but has allowed redemption on a payment of R.F. of ₹ 2,25,000/- apart from imposing penalty of ₹ 50,000/- on the appellant-company and a penalty of ₹ 10,000/- on the Managing Director of the appellant-company. 3. Shri Hari Radhakrishnan, learned counsel appearing for the appellant states that the impugned goods were only re-rollable scrap arising from steel pipes which have been sold to re-rolling units as re-rollable scrap and therefore, the order of the adjudicating Commissioner requires to be set aside on all counts inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g their mistake and mis-declaration. 5. After hearing both sides and perusal of case records, we find that after the DRI officers intercepted the impugned consignment, all the 9 containers have been opened and the contents thereof have been examined by M/s. SGS India Pvt. Ltd. The survey report by M/s. SGS India gives the following findings and conclusions :- All the nine containers were opened and material was visually examined. Material was in the form of pipes including Electric Resistance welded pipes and seamless pipes on different dimensions. Most of the pipes found rusted. Split opening along the seam in ERW pipes noticed. This quantity constitutes approximately 20% of the total consignment and can be considered as scrap direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with visible split opening along the seams, the remaining 80% of pipes are considered as Factory Rejections during internal testing and hence the total consignment can be categorized as Steel pipe scraps. From the above, it is seen that about 20% of the consignment consists of rusted pipes with split openings along seams. However, the other 80% appear to be factory rejections. Based on this finding by M/s. SGS India, it is difficult to accept the conclusion that the entire consignment can be categorized as steel pipe scrap. Even this survey report does not support the claim of the appellants that the imported goods can be categorized as re-rollable scrap eligible for DFRC benefit. In any case, the appellants themselves hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pipes for 20% of the consignment which according to the survey report is found to be scarp being rusted and having split openings along the seam. Therefore, in our view, in respect of 20% of the consignment, it would be proper to value the same on the basis of declared value in the absence of any other contemporaneous value for pipe scrap suggested by the Department. Consequently, the differential duty demanded would get reduced by 20%. 8. In view of our findings as above, we order 20% reduction in the differential duty amount demanded, as well as 20% reduction in the redemption fine and the penalties imposed. Both the appeals are partly allowed in the above terms. The miscellaneous application filed for taking additional evidence on re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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