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2016 (11) TMI 173 - AT - CustomsEnhancements of fine and penalties - import of consignments of Hot Rolled Coils - whether goods are of prime quality or are defectives, hereby losing eligibility for duty free clearance under the DFRC licenses? - Held that: - the IIT report itself shows that the compositions of the goods are in order. It is only the physical appearance of goods is of non-prime quality. In our view, quality of goods particularly steel items can be correctly ascertained only on the basis of composition of goods. Therefore only because on physical examination it appears to be non-prime material cannot be concluded that the goods are of other than prime quality. We further observed that in the DFRC license the tariff description is given as appearing in the tariff heading No. 72082790, the goods imported by the assessee is undisputedly falls in the same tariff heading and the description of goods was also given as hot rolled coils from stock'. We therefore find that there is no mis-declaration in the bill of entry vis-a-vis description given in the DFRC license. So long both the description falls under the same tariff heading number, it cannot be said that two different descriptions were declared under DFRC and in the Bill of Entry. Moreover, the composition is matching but on the physical examination the goods found to be non-prime quality. This cannot be the reason to allege that there is a mis-declaration. No different treatment is given to prime quality and nonprime quality material either in the Customs Tariff or in the DFRC Licences. Therefore even if it is admitted that the part of the imported goods is on non-prime quality material the goods are neither liable for confiscation nor the DFRC benefit can be denied - Revenue's appeal of enhancement of fines and penalties set aside - appeal disposed off - decided against Revenue.
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