9911796707
TMI Blog2008 (2) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... ember (T) [Order per : A. K. Srivastava, Member (T)].-1 . Heard both the sides and perused the records . 2. The Additional Commissioner, vide Order-in-Original No. 32/ADC/CUS/02 dated 19.09.2002, ordered that the 41.777 MT of M.S. Rounds to be classified under tariff sub heading No. 7214.20 of the 1 st Schedule to the Customs Tariff Act, 1975 and to be assessed at the rate of Rs. 7.67 per kg. He ordered the confiscation of 42.630 MT of goods under 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er:- "that they were running induction furnace having capacity of 3 MT for the manufacture of MS Ingots and are registered with Central Excise Deptt. that their main raw material was iron scrap which they were procuring locally as well as, importing from M/s Lloyd Global Traders. that they were regularly importing the HMS at CFS, Ldh. and clearing the same at concessional rate of duty on actual user condition for which they submit end-use bond. as per 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 mutilatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mporters were also importing HMS for the purpose of melting to manufacture MS ingots. 9. The Commissioner (Appeals), however, rejected the request of the appellants for mutilation of the impugned goods on the ground that the same was made by the appellants only after the detention of goods as fresh bars and rods instead of HMS as declared. In this connection, it is to be noted that the appellants had placed order for HMS on the supplier/exporter. The invoice under 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 coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ms for granting permission for mutilation of the goods, which were found to be serviceable. Thus, immediately after the import of the goods on 26.4.2000 vide Bill of Entry No. 699, the requests were made on 26.5.2000 for permission to mutilate the offending goods before their release. This clearly establishes their bona fide and, therefore, the above observations of the Supreme Court cannot be blindly applied to the present case. 12. We, therefore, direct that the offending goods may be released to the appellants after effective mutilation under the Customs supervision, thereby rendering them as scrap. Scrap so generated after mutilation will be cleared on payment of appropriate Customs duty on the loaded value of US$ 105 MT by cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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