TMI Blog2001 (1) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany had imported 98.590 MTs of Steel Turning Scrap in five containers and the stated container was one of the last to be unloaded. During the course of investigation, it was revealed that the stated party was manufacturing steel ingots out of imported steel turning scrap and indigenous scrap and that they had purchased a total quantity of 98.950 MTs of steel turning scrap from M/s. Shree Subhadra Industries on high sea sales basis. They had filed the Bill of Entry No. DH 0200624, dated 5-2-1993 for the clearance of the same. Out of this quantity, 19.880 MTs was copper scrap and the balance was steel scrap. On the reasonable belief that 19.880 MTs of copper scrap had been concealed among 78.710 MTs of steel turning scrap while importing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order impugned dated 6-7-1993 in which he ordered for confiscation of seized copper scrap totally weighing at 19.880 MTs and valued at Rs. 12,92,831.79 under the provisions of Customs Act as referred to supra, but however, he gave an option to M/s. Shree Jagannath Steels Ltd. to redeem the same on payment of a fine of Rs. 1,95,000/-. He also confirmed duty amount of Rs. 9,31,965.34 on M/s. Shree Jagannath Steels Ltd. The Commissioner in his order further confiscated steel turning scrap of 78.710 MTs under Section 119 of the Customs Act, but allowed the same to be redeemed on payment of fine of Rs. 20,000/-. He further imposed a penalty of Rs. 50,000/- on M/s. Shree Jagannath Steels Ltd., Rs. 60,000/- on Shree Subhadra Industries and Rs. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment of the respective redemption fines, as imposed by the Commissioner. He however, would plead reduction in the quantum of fines imposed in respect of these items. He also stated that in view of the bona fide belief of the appellant that the container imported by them had contained only steel scrap as described in the concerned invoice, there is no warrant for imposition of penalty on the appellants. Continuing his argument with regard to the other two appellants namely M/s. Shree Subhadra Industries and Shri B.N. Upadhyaya, learned Advocate, submitted that there is no evidence of any benefit accruing to M/s. Shree Subhadra Industries in these transactions in respect of the illegal import of the copper scrap. It is stated that this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The invoice relating to these goods described them as steel turning scrap. M/s. Shree Jagannath Steels Ltd. have filed the Bill of Entry for the clearance of the same on 5-2-1993. The goods were released from the Customs charge and had been taken to the factory of M/s. Jagannath Steels Ltd., where on information, the officers of the Central Excise department searched the same and as a result of which the goods were found to contain copper scrap totally weighing 19.880 MTs valued at Rs. 12,92,831.79. This copper scrap has been confiscated and released to M/s. Shree Jagannath Steels Ltd. on payment of fine of Rs. 1,95,000/-. The balance quantity of 78.710 MTs of steel turning scrap has also been confiscated under Section 119 of the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries, we find force in the contention of the learned advocate that there are no findings that this party had in any manner derived any benefit from the illegal import of the copper scrap in the guise of steel turning scrap as they had received the invoice describing the impugned goods as steel turning scraps and they sold the same to M/s. Shree Jagannath Steels Ltd. as such. There is also no finding with regard to any extra amount clandestinely received by this appellant from the buyers of the goods apart from the one which was contracted between the two parties. We, therefore, set aside the penalty imposed on M/s. Shree Subhadra Industries. The findings of the Commissioner for imposing penalty on Shri B.N. Upadhyaya, Manager of M/s. S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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