RAMAN ENTERPRISES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) This appeal is directed against Order -in -Original No. 326/2002/CAC/CC/AH, dated 12 -7 -2002 passed by the Commissioner of Customs, Mumbai. In the impugned order, the Commissioner confiscated a consignment imported by the appellants under Sections 111(d) and 111(m) of the Customs Act, 1962. The appellant was allowed an option to redeem the goods on payment of a fine of Rs. 6.5 lakhs and a penalty of Rs. 65,000 was imposed under Section 112 (a) of the Customs Act. Further, the value of the goods was increased to approximately Rs. 33 lakhs for the purpose of assessing the goods to Customs duty.

(2.) The relevant facts leading to the passing of the order are that the appellant sought the clearance of the goods as "scrap" and declared a value of about Rs. 22 lakhs. This worked out to a unit value of US 1030 MT. The declaration of value and description was based on invoice issued by the supplier, namely M/s. Universal Impex Corporation, UAE.

(3.) Examination of the goods by the Customs showed that the goods were not scrap but were serviceable brass tubes, etc. The relevant extract from the examination report is reproduced below : - "Inspected lot opened and examined all. Checked description and found that goods are consisting of 22 MT of Brass Tubes of long length and serviceable in nature. But not new one and 8 MT round of the goods are brass slabs like. Therefore, the goods cannot be treated as scrap. There is no live arms/ammunition/other metal found. Examined the goods under DC/Docks supervision and approval on hard copy. Bill of entry forwarded to GR for necessary action at their end."