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TMI Blog2016 (2) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... as "Heavy Melting Scrap (uncut)" falling under chapter heading 72.04 of CTH. On examination, the goods declared were found to be "Used Second Hand Plastic Injection Moulding Machinery" falling under Chapter heading 8477 of CTH along with melting scrap. The Chartered Engineer examined the goods and submitted his report with life of machine and value. Adjudicating authority in his order, classified the goods of 142.10 MT under Ch 8477.10 as second hand injection moulding machinery and confiscated the goods and imposed redemption fine of Rs. 5 lakhs and also confiscated 20.53 MTs of HMS and imposed RF of Rs. 25,000/-. He also imposed penalty of Rs. 3 lakhs on the appellant under Section 112 (a) of the Customs Act. 3. In the first round of lit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, he submits that it is nothing but machine/scrap imported uncut. He relied the statement of Director of the company recorded at para-5 of the OIO, where in he stated that they have imported these goods from suppliers who are only scrap dealers for the purpose of using it as scrap. The supplierclarified that due to labour problem the goods could not be cut and mutilated before shipment and the same were sent as "uncut". Ld. counsel submits that Appellant also requested for re-export or to mutilate, and the adjudicating authority has not considered their request for re-export as well as for mutilation and confirmed the demand. He relied Board's circular No.1/2005 dt.11.1.2005 and also Interpretative Rules and the Supreme Court judgem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it excludes "articles of machinery" which can be reused after repair. As per Note 8 of Section XV scrap is defined as metal waste and scraps and metal goods not useable as such because of breakage, cutting up etc. Accordingly the adjudicating authority ordered for re-classification as used second hand machinery and chargeable to appropriate duty and confirmed customs duty and imposed redemption fine and penalty. The appellants have not exercised the option to redeem the goods. The impugned order on confiscation is liable to be upheld. 7. As regards the imposition of penalty of Rs. 3.0 lakhs on the appellants, we find the appellant is a actual user having manufacturing facility for re-melting the scrap. On perusal of statement of Mr.Umesh M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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