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2021 (8) TMI 641 - CESTAT CHANDIGARHClassification of imported goods - hollow profiles and pipes weighing about 10 MT found in the consignment - whether the goods are actually pipes and profiles and to be classified as such or merely as part of scrap - demand of customs duty - levy of redemption fine and penalty - HELD THAT:- The only documents on the basis of which a decision can be made in this regard are the examination reports and the letter given by the appellant to the Customs authorities both of which confirm that they were indeed hollow profiles and pipes and not scrap as declared. The appellant accepted that the mis-declaration, waived the Show Cause Notice by asking for a spot adjudication. If the appellant had contested the nature of the goods, a Show Cause Notice would have been issued and the remaining procedures followed. Once the appellant gave in writing that they have mis-declared the goods, they should be classified as profiles and pipes only and duty should be charged accordingly. It is worth noting that the goods were examined and on the request of the appellant, re-examined and after both these reports confirmed that the goods were hollow profiles and pipes, the appellant also accepted the mis-declaration in writing. If the pipes and profiles were indeed old, the appellant could have, instead of accepting a mis-declaration, requested for mutilation of these goods as per Section 24 so that they can no longer be used as pipes or profiles but need to be used as scrap only. However, the appellant made a request for spot adjudication accepting the mis-declaration and the order was passed accordingly. The appellant cannot now say that although they wanted a spot adjudication, the department should have still issued a Show Cause Notice. Therefore, the demand of duty in the adjudication order. The quantum of redemption fine and penalty reduced. Appeal allowed in part.
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