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TMI Blog2020 (1) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... pter 72 of ITC (HS) and BIS Act, 1986 read with Note 2A of General Notes regarding Import Policy" of the ITC (HS), 2012. (ii) The impugned goods are classifiable under the tariff item 72261100 & 72042990 and shall be assessed to duty accordingly on the re-determined assessable value accepted by the importer. (iii) The goods allowed to be cleared for home consumption after they are rendered as scrap in terms of para 3 (2) of the said Steel and Steel Products (Quality Control) the Second Order 2012. I also note that in the recent judgment of the Hon'ble Punjab and Haryana High Court in the case of M/s. R.G.Gupta & Co. (Order dated 09.09.2016 in CWP No.16721 of 2016) sub standard imported goods (i.e.34525 kgs.) were allowed to be cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of fine and the importer is liable to a penalty. The matter was adjudicated by the adjudicating authority and the order passed as mentioned hereinabove. The said order was challenged by the appellant before us. 3. The ld. Counsel for the appellant submits that reports of the Chartered Engineers for change of classification are not admissible. It is his submissions that the findings of the Chartered Engineer (who are not the metallurgical engineer) were based on the visual examination without getting it tested from any BIS Recognised Laboratory. To support this contention, he relied on the decision of this Tribunal in the case of M/s R.G. Gupta Vs. Commissioner of Central Excise, Ludhiana reported in 2017 (356) ELT 470 (Tri. Chan), Hind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal in the case of R.G. Gupta vs. CCE, Ludhiana reported in 2017 (356) ELT 470 (Tri.Chan) which has been affirmed by the Hon'ble High Court in Customs Appeal No. 10 of 2017. He also relied on the decision of this Tribunal in the case of Mohit Industries vide Final Order No.63293/2018 dt.26.10.2018. 7. He further submitted that in terms of Section 24 of the Customs Act, 1962, there exist no rules for mutilation of goods. To support of this, he relied on the decision of Commissioner of Customs JNCH Nava Sheva Vs. Madhu Sudan Metals reported in 2011 (266) ELT 334 (Bom.) and Union of India Vs. Madanlal Steel Industries Ltd. reported in 2001 (132) ELT 526 (SC) wherein it has been held that in the absence of any regulations under Section 24 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y this Tribunal in the case of R.G. Gupta (Supra) wherein this Tribunal observed as under: "With regard to Containers Nos. SCZU7828581 & SCZU7833398, the Chartered Engineer opined that these containers contain material in the form of CRGO Sheet in coil form. The coils were found to be pressed and stuffed in the shape of stripped bundles and the said scrap was consisting of side trimmings, wires, auto bodies and other waste of steel. If the condition whereas is like that the Chartered Engineer has given opinion only on the basis of visual inspection and no other market enquiry has been conducted and he has not examined the usage of said sheets/strips. Further, I have gone through the classijfication of the Chartered Engineer who examined t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciency of the motors. Such an opinion given on the basis of mere visual examination cannot be held to be binding. The Chartered Engineer also was not produced for cross-examination and as such his opinion cannot be given preference." We also take note of the fact that in the case of M/s Ocean Marketing (Supra), this Tribunal has further observed as under: "Further, the submissions of the appellant recorded in the impugned order at Paragraph 7.3 (page 6) that Shri M.N. Mathur being a Civil Engineer, is not competent to furnish the report in the field of Metal and that the Department has influenced him for issuing the report, has not been addressed by the ld. Commissioner (Appeals). On the contrary, the earlier reports furnished by the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Bureau of Indian Standard and the same has not been done. In that circumstances, the classification arrived by the adjudicating authority is not acceptable, therefore, classification is declared by the appellant is accepted. (C) Whether the goods are required to be mutilated as directed by the adjudicating authority. As the reports of the Chartered Engineers are not acceptable and the goods declared by the appellant as scrap has been accepted. In that circumstances, the goods are none other than the scrap as declared by the appellant, therefore, the same are not required to be mutilated. Moreover, the Hon'ble High court of Bombay in the case of Madhu Sudan Metals (Supra) held that no rules have been framed permitting the mutilation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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