TMI Blog2000 (11) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... the consent of both the sides. 2. These two appeals have been filed by the importer and the Managing Director of the Importing Private Ltd. Company. The importers had imported two consignments of bushellings and scrap from Malaysia at the Port of ICD, Bangalore. While filing the Bill of entries dated 10-5-1999 and 11-5-1999, the appellants have filed a letter dated 10-5-1999 (extracted below) intimating to the Assistant Commissioner of Customs, ICD Bangalore pursuant to filing of the Bill of entries : Please note that we have been advised by our principle M/s. Syarikat Perkilangan Best Gaya SDN, BHD, Malaysia, that they have shipped Bushelling scrap (6 x 20 5x 20 ) under two different Bill of Lading. We request you to kindly auth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 214.941 MT and bushellings scrap as 8 MT; and duties have been worked out in respect of sheets and scraps to be Rs. 13,67,985.70 and Rs. 8,155/- respectively. However, bushelling scrap in Bill of Entry 7087 was assessed for Rs. 97,220/- aggregating to Rs. 1,78,790/- out of which duty of Rs. 81,570/- was paid on 14-5-1999 as per the endorsement on the Bill of Entry 7083, dated 13-5-1999 and considering the duty payable and duty actually paid, the differential duty of Rs. 12,94,580.70 was found and alleged to be evaded and confirmed in the order impugned. The goods were ordered to be confiscated on the charge of concealment and mis-declaration of quantity and description under Section 111(d), (l) (m) of the Customs Act, 1962 and were orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ras High Court order in the case of Madan Lal Steels as reported in 1991 (56) E.L.T. 705, the Tribunal s order in the case of Antartic Industries Ltd. [1999 (108) E.L.T. 496] wherein para 3 thereof, the Tribunal has relied upon the decision of CBEC Clarification issued by Chambers of Commerce Industries dated 16-6-1995 that whenever serviceable goods are noticed in a consignment of scrap, they are ordered to be mutilated to such an extent to become steel scraps and benefit under the relevant Notification should be extended and the consignment should be assessed as steel scraps. He submitted that on 10-5-1999 experiencing the difficulties encountered by the imports in the earlier consignment, while filing the Bill of Entry they had filed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es under Sections 114A and 112A on the Managing Director are required to be set aside. Along with the Redemption Fine and goods should be allowed to be mutilated by putting them in the furnace in their factory as they are actual users of the goods and have executed an end-use verification bond as provided for in the Notification 20/99. 5. Ld. DR submits that the Collector has given a clear-cut finding regarding the absence of the letter dated 10-5-1999 on the question of request for mutilation. The bona fide of the appellants are not established in as much as two-thirds of the consignment has been found to be in the form of sheets which are apparently new and are admitted, can be re-rolled and re-worked and used as sheets. They should, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... early indicates that there was bona fide desire made by the importer to mutilate such items which are found serviceable, by the department. The very fact that a bond has been given for the full value of the goods were to be removed from the Customs ICD to the appellants factory at Hindupur (Andhra Pradesh) wherein they were to be mutilated by de-stuffing the entire container and putting it in the furnace under Central Excise control and supervision. There is no case or cause for them to evade duty as has been determined by the ld. Commissioner. We also find that the examination order dated 13-5-1999, is very clear on the reverse of the Bill of entry which states that complete 100% examination in deferred to the point of de-stuffing where i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at by not weighing the entire quantity and or segregating the three kinds of goods alleged to have been found by the officers. As per Boards orders, Import of Goods under clearances by mutilation is not banned. We, therefore, cannot find any reason to sustain the confiscation under Section 112 (d) (l) and (m) of the Customs Act, 1962. (b) Relying on the fact that end use bond has been given for mutilation of the imported goods in the factory premises and also that the Board has issued instructions that serviceable items of heavy melting scrap could be allowed to be cleared along with consignments of scraps subject to mutilation by assessing it as scrap and the appellants have given an application dated 10-5-1999 and they are regular i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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