STAR INDUSTRIES Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE appeal and stay application are directed against Order -in -Original No. 101/2012, dated September 17, 2012 passed by the Commissioner of Customs (Imports) JNCH, Nhava Sheva. The appellant, M/s. Star Industries Ltd., Jammu are engaged in the manufacture of ferro molybdenum lumps, chips and powders falling under Chapter 72 of the Central Excise Tariff. Intelligence received by the Directorate of Revenue Intelligence indicated that the appellants were importing molybdenum concentrate classifiable under Customs Tariff Heading 2613 and claiming the benefit of exemption under Notification No. , dated March 1, 2006 (Sl. No. 4) for exemption from payment of CVD by misdeclaring the product as "molybdenum ore" or "roasted molybdenum ore". Based on the above intelligence, two consignments of the appellant imported under bills of entry Nos. 4567406, dated September 6, 2011 and 4551981, dated September 5, 2011 were detained for examination on September 14, 2011. Examination of the goods revealed that in respect of bill of entry No. 4567406, dated September 6, 2011, the bags in which the goods were packed contained labels/marking which read as "roasted molybdenum concentrate". In respect of bill of entry No. 4551981, the markings were "molybdenum sulfide" (MoS2) roasted. Samples of the products under importation were drawn and sent for chemical examination to the Chemical Examiner, CRCL, Vadodara. It appeared that the appellant had misdeclared the goods as "molybdenum ore" with a view to avail benefit of CVD exemption and they were seized on September 26, 2011 under the provisions of section 110 of the Customs Act, 1962, on the reasonable belief that they are liable to confiscation under section 111 of the said Act.

(2.) THE test report received from the Chemical Examiner, Vadodara, vide the report dated September 28, 2011 confirmed that the goods were "molybdenum ore concentrate containing molybdenum 61.6 percent as MoO3" in respect of bill of entry No. 4567406. In respect of bill of entry No. 4551981, the test report dated September 27, 2011 confirmed that the goods composed of oxides of molybdenum and Mo was 62.36 percent and the MoO3 was 93.54 percent. The samples thus tested confirmed the goods to be molybdenum concentrates.

(3.) THE investigation further revealed that the appellant had imported identical goods earlier also under 14 bills of entry by declaring the goods as "molybdenum ore/roasted molybdenum ore" and availing of CVD exemption totally amounting to Rs. 3,10,73,035 during the period March, 2011 to July, 2011.