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TMI Blog2010 (10) TMI 979X X X X Extracts X X X X X X X X Extracts X X X X ..... rollable scrap. The adjudicating Commissioner has held the impugned goods to be steel pipes and enhanced the value rejecting the invoice value, confirmed the duty demand calculated on the enhanced value, confiscated the impugned goods but has allowed redemption on a payment of R.F. of ₹ 2,25,000/- apart from imposing penalty of ₹ 50,000/- on the appellant-company and a penalty of ₹ 10,000/- on the Managing Director of the appellant-company. 3. Shri Hari Radhakrishnan, learned counsel appearing for the appellant states that the impugned goods were only re-rollable scrap arising from steel pipes which have been sold to re-rolling units as re-rollable scrap and therefore, the order of the adjudicating Commissioner requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tarily paid the differential duty accepting their mistake and mis-declaration. 5. After hearing both sides and perusal of case records, we find that after the DRI officers intercepted the impugned consignment, all the 9 containers have been opened and the contents thereof have been examined by M/s. SGS India Pvt. Ltd. The survey report by M/s. SGS India gives the following findings and conclusions :- "All the nine containers were opened and material was visually examined. Material was in the form of pipes including Electric Resistance welded pipes and seamless pipes on different dimensions. Most of the pipes found rusted. Split opening along the seam in ERW pipes noticed. This quantity constitutes approximately 20% of the total consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities that the imported goods were mis-declared as re-rollable scrap to avail of the exemption benefit and therefore, in our view, the same has been rightly denied. 6. Considering the fact that 80% of the consignment has been found to be factory rejections, the same has been rightly treated as steel pipes for assessment purpose. The valuation done by the customs authorities based on contemporaneous import price noticed at Chennai Port cannot, therefore, be faulted with as far as 80% of the impugned consignment is concerned as factory rejects of pipes are also required to be assessed as pipes. 7. However, as far as the remaining 20% of the consignment is concerned, since these have been found to be not only rusted but also ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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