2006 (7) TMI 81

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..... Manba Enterprises, claiming exemption from payment of duty under DEEC Scheme. The goods were examined, as first check, in the presence of experts from National Metallurgical Laboratory (NML), Chennai. NML, in their report dated 7-2-2002, certified the goods to be of not confirming to AISI 304 grade. However, in response to a requisition from the Department, NML clarified in their letter dated 27-2-2002 that the goods, though apparently of seconds quality in visual examination, still confirmed to AISI 304 grade in terms of chemical composition. Subsequently, the above Bill of Entry was withdrawn and a fresh Bill of Entry for warehousing was filed wherein the goods were declared as "STAINLESS STEEL COIL SECOND QUALITY GRADE AISI 304" and the .....

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..... at, all throughout, they declared the Stainless Steel Coils as of AISI 304 grade and, in the final report of NML also, this declared grade of the goods was confirmed. In the circumstances, it cannot be said that the goods were misdeclared. Hence, according to learned consultant, it was not correct on the part of the Commissioner to confiscate the goods or to impose penalty. We have heard learned SDR also, who reiterates the findings of the Commissioner. 3.We have considered the submissions. In the original Bill of Entry (for home consumption) filed by the appellants, they declared the goods as "Stainless Steel Coil AISI 304". In that Bill of Entry, they claimed DEEC benefit, which was available only to stainless steel coils of prime quali .....

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..... e consumption Bill of Entry, wherein there was alleged misdeclaration of goods, with the permission of the proper officer, and filed a fresh Bill of Entry for warehousing. The NML's first report was against the party, but their second report, which was clarificatory to the first, was in their favour insofar as the grade of the goods was concerned. In other words, there was no misdeclaration of grade. The party did not expressly declare the goods as of prime quality, in their original Bill of Entry. In their second Bill of Entry for warehousing, they specifically declared the goods to be of seconds quality, all these having been done when the goods were still under customs custody. When all these factual aspects are taken into account, we ar .....

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