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TMI Blog2019 (11) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... this proposal to its logical conclusion but resorted to section 14(2) of Customs Act, 1962 which is nothing but an alternative proposed in the notice. This alternative proposal should have been preceded by a proposal to reclassify the imported goods and such a proposal is markedly absent. The conclusions derived from the test reports are not unambiguous. While the testing authority did opine that the samples were other than copper residue , we find no elaboration commencing therefrom which could lead to the conclusion that the goods are brass . Mere conclusion of non-conformity to declared declaration does not sanction the adoption of an alternative classification which has not even been proposed. Such non-conformity, even if acceptab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e light of a fundamental issue raised by Learned Counsel, we do not propose, at this stage, to go into the merits claimed by either side or the breach of natural justice alleged by the appellants. This is especially so as Learned Authorised Representative places reliance on the decision of the Hon ble Supreme Court in Commissioner of Central Excise, Madras v. Systems Components Pvt Ltd [2004 (165) ELT 136 (SC)] which observed that 3. The Assistant Collector noted that it was an admitted position that these were all parts of the Water Chilling Plant manufactured by the Respondents and that they had no independent use on their own. xxxxx 5. The Tribunal has noted the Technical details s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brass scrap and for confiscation of the said goods besides resort to penal provisions. We also find that, in the paragraphs immediately preceding the proposals, the conclusion of the investigation that the transaction value was US $ 3720 per metric ton, based on statements recorded, and that goods were not copper residue as claimed in the bills of entry based on test reports, but admitted to be brass scrap are on record. It would, therefore, appear that the conclusion of the nature of the goods, not as want of includability in the claimed classification but under an entirely different description, has been presumed to require compliance with section 18 of Customs Act, 1962. 4. We take note that, in exercise of powers c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 62 is a measure of value, permitted by legislative sanction, for computation of duty. It was not intended to supplant, or as a surrogate for, the basic determination of leviability of duty. The starting point of any assessment is the acceptance of the declared classification (rate of duty) or the substitution thereof by an alternative classification (rate of duty) in accordance with section 17, 18 or 28 of Customs Act, 1962. No notification issued, under any of the empowering provisions, by Central Government or any other authority can suffice as the basis for levy of duty. Neither does presumption of conformity to description in such notification suffice to overcome the onus to propose an alternative classification and, thereby, a differen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product to which the proposed rate of duty applied. The counterclaim of the assessee was that, even with those parts, the classification was to be guided by certain circulars. There was, thus, no dispute on the nature of the goods that went into the manufacture of the final product. On the contrary, the presumption herein of the imported goods being brass scrap is based on statements of individuals, and not in admission by appellant, and the presumption has been, and continues to be, challenged in proceedings. The factual matrix of the decision in re Systems Components Pvt Ltd is not replicated here. 8. The conclusions derived from the test reports are not unambiguous. While the testing authority did opine that the sampl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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