ARYA INTERNATIONAL Vs. COMMISSIONER OF CUSTOMS, KANDLA

JUDGEMENT

(1.) AS per the facts on record appellant imported heavy melting scrap from M/s. D.K. Metals & Alloys, Somalia and one IGM and 10 separate bills of lading were filed by the appellants agent with Kandla Customs on 27 -4 -05 declaring the goods as heavy melting scrap totally weighing 2503 MT. On examination of the said scrap it was found that 96.260 MT is of war material, 288 MT was re -rollable scrap as against the declared heavy melting scrap and 351.30 MT was excess in quantity than the declared quantity.

(2.) DURING the course of further investigations statements of Shri Tejendar Mohan Jindal, Power of Attorney Holder were recorded on 3 -5 -05 and 21 -6 -05 wherein he expressed his lack of knowledge about the presence of war material. He also explained that the entire material was loaded at a port at Somalia where vessels were facing risk of terrorists and pirates and therefore, the cargo was loaded in a hurry without actual weighment, and preparation of the exact draft survey of weight, etc. was not possible due to dangerous situation prevailing in Somalia, and that the exact quantity was to be ascertained at Kandla before filing a bill of entry for clearance of goods. Pre -shipment inspection certificate by the Gulf Inspection International Company (KSC), Kuwait dated 20 -4 -05 for the cargo was also referred to. Statement of other various persons belonging to agencies like shipping company, CHA etc. were also recorded.

(3.) ON the basis of the declaration made by the appellant that they do not want any show cause notice or hearing, Commissioner adjudicated the matter vide his impugned order confiscating absolutely 96.260 MT of war material, confiscating 351.300 MT as an excess quantity with an option to the appellant to clear the same on payment of redemption fine of Rs. 5.27 lakhs, confiscating 288 MT of re -rollable scrap on the ground of misdeclaration as HMS with an option to redeem the same on payment of redemption fine of Rs. 4.32 lakhs. In addition he also confiscated the remaining HMS scrap weighing 147.740 MT with an option to the appellant to redeem the same on payment of redemption fine of Rs. 6.50 lakhs. Penalty of Rs. 10 lakhs was imposed upon the importer M/s. R.A. International, in terms of the provisions of Section 112 of the Customs Act, 1962.