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2020 (9) TMI 902 - AT - CustomsValuation of imported goods -steel nuts - misdeclaration of value - enhancement of value with the consolation of reducing the fine - primary contention of the appellant is that there has been no misdeclaration, that specific authority for adoption of London Metal Exchange (LME) prices is not on record and that the fine and penalty are not proportionate to the extent of alleged undervaluation - HELD THAT:- On perusal of note 1 in chapter 72 of the First Schedule to Customs Tariff Act, 1975, it is observed that several forms of ‘iron and steel’ have been described and while all of them are intended for determining the rate of duty in relation to goods enumerated in the said chapter, those of ‘steel’, ‘stainless steel’ and ‘other alloy steel’ in (d), (e) and (f) in the note are intended to apply to such descriptions anywhere in the schedule. The first appellate authority cannot be faulted for reference to these descriptions for the purpose of chapter 73 of the First Schedule to Customs Tariff Act, 1975. The lower authorities have relied upon the ascertained chromium content. It is abundantly clear that to conform to description as ‘other alloy’ it should not be ‘stainless steel’ which is distinguished by being ‘alloy steel’ with the carbon content restricted to 1.2% or less and with chromium content of at least 10.5%. Consequently, it would appear that ‘other alloy steel’ should have at least 0.3% of chromium content - As pointed out by Learned Consultant, the proceedings lack any record of determination of such contents. We also take note that the rate of duty is not in dispute. The evidence on record is not sufficient to determine the impugned goods either as ‘stainless steel’ or as ‘other ally steel’ and, in the absence of such evidence, the declaration cannot be faulted. There is no ground to dispute the valuation. Hence, the enhancement of values and detriment built upon alleged misdeclaration fails - Appeal allowed - decided in favor of appellant.
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