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TMI Blog2008 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 111(m) of the Customs Act, 1962. However, in exercise of the powers conferred upon under section 125 ibid, he gave the option to the appellants to redeem the same on payment of fine of Rs. 50,000/- besides payment of duty and other charges leviable, if any. He also imposed a penalty of Rs. 25,000/- on the appellants under Section 112(a) ibid. On appeal, the Commissioner (Appeals) has confirmed the above order. Hence this appeal. 3. The brief facts of the case are that the appellants, a manufacturer-importers, imported Heavy Melting Scrap (HMS) vide Bill of Entry No. 699 dated 26.04.2000, consisting of two containers bearing Nos. EISU-3425544 and GLDU-2091675 which weighed 42.630 MT. The Bill of Entry mentioned the go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... international standard, the foreign supplier were sending HMS consisting of old and used angles, channels, girders, saria, pipes etc. and because of heavy labour cost in the foreign countries the supplier of Heavy Metal scrap supply the scrap even of bigger size i.e. without mutilating the same in small pieces; that during the examination of the goods the material was found to be saria of different lengths ranging between 4'-15' which is end-cuttings of the rolling mill; that the length of saleable/finished saria in the market was not less than 40' so the saria of 4'-15' could not be called serviceable; and that in case the department is of the view that the said material was serviceable, the mutilation under section 24 of the Customs Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the cover of which goods were supplied also described the goods as HMS and the price was also accordingly charged. Thus, the appellants had no means to know in advance as to what is contained in the containers is fresh bars and rods or HMS. The true identity of the goods could have been ascertained only after the containers were opened and inspected. Therefore, the rejection of the request of mutilation by the Commissioner (Appeals) on this ground is also not correct. 10. The legislation has created specific provision under Section 24 of the Customs Act, 1962 for mutilation of imported goods. The appellants specifically requested for mutilation of goods, so as to satisfy the Customs officials about the material being in the n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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