9911796707
TMI Blog2005 (6) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on behalf of the M.V. Arjun. Description of the Cargo of 1950 MT as "Heavy Melting Scrap" three Bills of Entry viz. Nos. 43, 44, 45 of date 16-2-98 were filed for clearance of the above said consignment on behalf of the importer M/s. Shree Electromelts Ltd., Bhavnagar (hereinafter referred to as 'Shree'). The cargo in the bill of entry was described as "Heavy Melting Scrap" and benefit of Notification No. 11/97 was claimed. 2.(a) Following an information of misdeclaration officers of Bhavnagar Customs carried out examinations of the cargo and found that it also consist of railway object transformers and other miscellaneous ship, railway repair yard scrap. The consignment was considered to be called as 're-rollable scrap.' It is val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Almighty, M/s. Shree Electromelts Ltd., M/s. Regency and the C.H.A., asking them to show cause as to why. (i) The entire Quantity of scrap as well as the vessel N.V. Arjun should not be ordered to be confiscated under Section 111(n) and under 111(f) and Section 115 respectively. (ii) Penalty under Section 112(b) not be imposed on M/s. Almighty and C.H.A. and penalty under Section 112(a) be imposed on Shree Ltd. (iii) The value declared on the B.E's not be increased to 163 P.M.T. cif for heavy melting scrap and to 185 for re-rollable scrap. (g) After considering the replies the present order now impugned in these proceedings was passed holding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould not have had reasons to know the actual cargo in the holds of the vessel especially its classifications as a different scrap. The penalty as imposed under Section 112(b) on M/s. Oceanic shipping cannot be up held more so a shipping agent has to file the I.G.M. only as per the declarations on the Bill of Lading and other documents as made available by the shipping company or and the master of the vessel. (b) The total quantity of the goods have been found to be declared. A ship agent is not expected to know the nuances and difference between "Heavy Melting scrap" and "Re-rollable scrap" even if it is held that the shipping agents partner had accompanied the officers during the boarding formality on 18-2-98 and h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he surrender of the BE's filed and cancellation effected and approved by the Proper Officer of Custom will not assist them from visit of penalty since it was the failure of Shree to give proper description and correct values on their BEs and their refusal to clear the goods necessitated the amendment of the IGM and clearance of goods by others. We cannot uphold the imposition of penalty on Shree on these grounds. Once the surrender of the BE and it cancellation is accepted by the Proper Officer of Customs, the liability for import of such goods as covered by that BE cannot visit the person who has filed the BE expecting a favourable commercial import. Penalty on Shree is to be set aside. (e) The word 'entry made' in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and valuation of scrap, even if held to be misdeclared is arising out of application of valuation rules, that ipso facto cannot be cause for imposition of penalty on M/s. Raghav. (g) Since confiscation of goods under Sections 111(f) and 111(m) is not being upheld, the liability of confiscation under Section 115(2) of the vessel cannot be upheld. (h) The Commissioner has enhanced the value declared on the BE's of Raghav and Reliance on the following findings - (i) The contemporaneous import price of melting scrap imported during December 97 & January 98 at Customs House Mumbai is comparable quantities was USD 163 PMT cif. (ii) &nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the decision in the case of Basant Industry to accept the negotiation price was not acceptable to him due to the vast difference between the prices as declared and proposed by that department and as also there was no longer standing commercial reliable ship. The Commissioner has come to a definite finding to the effect that since there were no imposition of such scrap from Russia cited before him to Rules 5 and 6 were not applicable. He found that there being no imports of re-rollable scrap from Russia and Rule 6 was not correctly involved as also Rule 7 and Rule 7(a) valuation was not available valuation under Rule 8 was to be resorted. He therefore compares the price from the Scrap imported from Austria Belgium at a available of USD 163 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
