2023 (5) TMI 456 - AT - Customs

Valuation of imported goods - misdeclaration of goods - 288.300 MTS of Heavy Melting Scrap - rejection of declared value in respect of the 87.350 MTS of Rail Material Scrap and re-determination of the same - classification of impugned goods under CTH 72.04 or 73.02 - applicability of Circular No. 8/2006-Cus dated 17.01.2006 - Commissioner (Appeals) allowed the appeal of the Importer / respondent - HELD THAT:- Show cause notice was waived by the party vide their letter dated 14.05.2013 accepting mis-description. This letter was never produced before the appellate authority and therefore the Commissioner (Appeals) has been misled by them.

In view of the said letter, there is a lot of factual similarity in this case with the matter of COMMISSIONER OF CUSTOMS (SEA PORT-IMPORT) CHENNAI VERSUS INDO DEUTSCHE TRADE LINKS AND ANR [2017 (3) TMI 488 - SUPREME COURT] where it was held that classification under 7204 for “used rails” declared as Heavy Melting Scrap on importation was improper and product was correctly classifiable under Heading 7302, when assessee itself in a letter to Department admitted misdeclaring imported cut Rails as heavy melting scrap and requested for condonation of misdeclaration and admitted value declared to be under lower side and accepted its value for rectification.

The order of Hon’ble Supreme Court needs to be followed in the present matter - order of Commissioner (Appeals) is therefore, set aside - appeal allowed.