AIA ENGINEERING LTD. Vs. COMMISSIONER OF CUSTOMS, AHMEDABAD

JUDGEMENT

(1.) AFTER hearing both sides, duly represented by Shri P.M. Dave, learned advocate appearing for the appellants and Shri R.S. Sangia, learned SDR appearing for the Revenue, we find that the appellants imported consignment of 250 MTs of Heavy Melting Scrap in 15 containers and filed Bill of Entry dated 23 -4 -2007 for clearance of the same, after declaring the price and annexing requisite document. The appellant also produced a pre -inspection certificate issued by M/s. Alex Stewart International (Aust) Pty. Ltd., Australia. The said Bill of Entry was assessed and examination of the cargo was conducted on 28 -4 -2007. The out -of -charge of order was passed and the appellant took delivery of the 4 containers and brought the same to their factory. However, admittedly, on de -stuffing the 3 containers, the appellant noticed that the metallic scrap imported by them also contained used arms and ammunitions. Thereafter, they themselves informed the officers of Customs (ICD) Sabarmati in the late evening of 4 -5 -2007 about the presence of war material in the consignment of waste and scrap by them.

(2.) AS a result, the officers undertook examination of above scrap and segregated the war material with the help of labourers. Due precaution was taken by them by informing the police officials. Statements of various representatives of appellants were recorded, wherein they admitted that they have entered into an agreement with their overseas suppliers for import of waste and scrap and on noting the fact of presence of some exploded shells and other war material, they themselves informed the Revenue about the same. It was also contended by the appellant that inasmuch as the import was duly accompanied by pre -shipment inspection certificate in terms of Boards circular, no contravention can be said to have been committed by them.

(3.) AS a result of above development, the remaining 11 containers were also de -stuffed and examined and the war material was segregated. As a result, out of the total consignment of 250 MTs of scrap, 9.533 MTs were found to be used arms and ammunition scrap. Accordingly, proceedings were initiated against the appellant for confiscation of said 9.533 MTs of war material along with confiscation of balance waste and scrap for imposition of penalty upon the appellant.