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METROLLA STEELS LTD. Versus COMMISSIONER OF CUS., COCHIN

2007 (9) TMI 491 - CESTAT, BANGALORE

Confiscation and penalty - Misdeclaration - M.S. Rods - classification of goods - case of appellant is that imported (scrap) were classifiable as M.S. Rods of prime quality and they should be levied duties on that basis - C/30/2006 - 1118/2007 - Dated:- 14-9-2007 - Justice R.K. Abichandani, Shri T.K. Jayaraman, JJ. REPRESENTED BY : Shri N.K.R. Nair, Consultant, for the Appellant. Shri K.S. Reddy, DR, for the Respondent. [Order per : Justice R.K. Abichandani, President (for the Bench)]. - The app .....

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declared as heavy melting scrap, classifiable under Heading 7204 for which the importer claimed the benefit of the Notification No. 21/2002 S.No. No. 200 applicable for melting scrap, on execution of end-use undertaking and production of end-use certificate. The declared value related to the goods having been declared as heavy melting scrap. When the goods were assessed on second check basis on open order being given and examined, it appeared that, in one of the containers 70% of the goods were .....

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pect of the other bill of entry, four containers were examined which were found to be having prime quality steel rods (mild steel) inthe ratio of approx. 60% having length of 510 cms. and a diameter of 40 mm, and 30% having length of 170 cms. with the same diameter. 3. As noted in the impugned order, 100% examination of goods was done and it was confirmed that, in all the containers majority of the goods were mild steel rods of prime quality of the same dimensions as noted above. The prime .....

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re, in fact, used for melting. It was argued that, there was no reason to attribute mala fide intention to the appellant. It was also argued that, as per the international standards, the goods were all scrap and could not have been considered to be of prime quality. It was, therefore, submitted that, there was no justification for classifying the goods as M.S. Rods of prime quality under Chapter Heading 7214 and the enhancement of value and order of confiscation of the goods, and imposition of p .....

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ibed as scrap were found to be steel rods of prime quality, the value of scrap declared by the importer could not have been accepted for the goods of prime quality. According to him, therefore, the Commissioner has rightly placed reliance on the value of similar goods imported around that time. 6.1 The learned authorized Representative for the Department placed reliance on the following decisions in support of his contention : (i) Ashok Magnetics Ltd. v. CC, Chennai, 2005 (188) E.L.T. 510; .....

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r of the Hon ble Supreme Court dismissing the appeal against it reported in 1997 (92) E.L.T. A131; and (v) Shyam Antenna Electronic (P) Ltd. v. CC, Delhi, 2003 (162) E.L.T. 898 (T-Del.). 7. From the material on record, it is established, without any shadow of doubt, that the goods which were declared as heavy melting scrap on behalf the appellant in the two bills of entry were on physical checking found to be of prime quality having uniform length and diameter to the extent of 70% and 60% i .....

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th and diameter. In this context, the question, whether the goods were waste and scrap, is required to be examined as per the Section Note 8(a) of Section XV of the Customs Tariff under which it is provided : Metal Waste and Scrap from the manufacture or mechanical working of metals, and metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons . The goods of prime quality cannot be said to be goods not usable. On being asked, it was stated on behalf of the .....

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ommissioner was justified in relying upon the NIDB data base and two imports of similar goods. He has adopted the lowest CIF value based on the exchange rate prevalent during the relevant period, and giving quantity discount the revised assessable of the goods was arrived at. It, however, appears that, the Commissioner, while noticing that there was 100% examination of goods in which 70% of the goods covered under one bill of entry and 60% covered in the other, were found to be goods of prime qu .....

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