2003 (12) TMI 139

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... From records it is clear that the entire exercise of getting in touch with their foreign suppliers and raising of supplementary invoices by the foreign supplier is only after the DRI stepped into the matter and started investigations. There is no explanation by the importer as to why the foreign supplier would send such a huge quantity of goods inadvertently; as to why the foreign supplier would not come to know of the said mistake, even if committed, for a period of about a month after shipping bills; why is it that the foreign supplier realised their mistake only after start of DRI investigations in India. Accordingly we hold that there has been a misdeclaration on the part of the importer as regards the quantity of the scrap. As regards .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of in above terms.
Smt. Archana Wadhwa, Member (J) and Shri V.K. Jain, Member (T) [Order per : Archana Wadhwa, Member (J)]. - Vide the impugned order Commissioner of Customs has confiscated the imported copper scrap with option to the appellant to redeem the same on payment of redemption fine of Rs. 15,00,000/- on the findings that the same has been misdeclared in respect of the quantity as also the value. Further personal penalty of Rs. 5,00,000/- has been imposed upon the first appellant M/s. Drunkey Exports (P) Ltd. along with imposition of personal penalty of Rs. 5,00,000/- on the second appellant Shri Rajesh Sonthalia. In addition duty on the excess found quantity has been confirmed against them on the enhanced value. 2. We have h .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eing followed in Mumbai Customs House, the declared price is accepted after 15% discount is applied on the L.M.E. prices. If that discount is extended to them their declared price is acceptable. 4. We have also heard Shri T.K. Kar, ld. SDR, appearing for the Revenue who submits that that no foreign supplier would send huge quantity of copper scrap totally valued at around Rs. 50,00,000/- without any order from his customer. Such a mistake was not detected by the foreign supplier till the initiation of the proceedings in India by DRI. This fact itself is indicative of the mala fide intention of the importer. As regards valuation he submits that L.M.E. prices should be adopted. 5. We have considered the submissions made from both the sides. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 003 (156) E.L.T. 922 (T) = 2002 (53) RLT 891 (CEGAT - Del.) has held that transaction value of copper scrap is not to be rejected on the basis of the prices indicated in L.M.E. Bulletin when there is no corroborative evidence of contemporaneous imports on the higher price. Similarly is the other decision of the Tribunal in the case of 2002 (140) E.L.T. 306 (T) = 2002 (48) RLT 111 (CEGAT) CC, Nheva Sheva v. Sangeeta Metals India. It was observed that the London Metal Exchange prices are only indicative of the prevailing market price, but in the absence of any contemporaneous imports of identical goods reliance on LME cannot be sustained. Inasmuch as in the present case there is no other evidence for enhancement of the value we do not find an .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X