SUN ALUMINIUM EXTRUSIONS Vs. COMMISSIONER OF CUSTOMS, HYDERABAD

JUDGEMENT

(1.) THIS appeal has been filed against Order -in -Original No. 24/2005 -Adj -Cus., dated 19 -11 -2005 passed by the Commissioner of Customs & Central Excise, Hyderabad.

(2.) THE appellants imported goods declared as Aluminium Scrap -tread classifying them under CETH 76020010 and under CETH 760210 by claiming the benefit of exemption Notification No. 21/2002 Sl. No. 495. Revenue proceeded against the appellants on the ground that import of metallic waste and scrap in unshreded, compressed and loose form shall be permitted only through some listed ports in terms of Para 2.32 of the Handbook of Foreign Trade Policy Procedure 2004 -2009. Hyderabad ICD port is not one of the ports listed in the said policy. The Original Authority on the basis of the import policy and CBECs Circular No. 56/2004 -Cus., dated 18 -10 -2004 held that the goods have been imported in violation of Para 2.32 of the Handbook of Procedures 2004 -2009 as amended by Public Notice No. 16/2004 -2009, dated 15 -10 -2004 and therefore are liable for confiscation under Section 111(d) of the Customs Act, 1962. Further, he held that the goods would be classifiable under 76020090 and not as claimed by the importer under 76020010. The consequence of the revised classification is that the goods are restricted for import and require license. In view of the above violations, the Original Authority confiscated the goods under Section 111(d) and 111(m) of the Customs Act, 1962. However, he imposed a redemption fine of Rs. 8 lakhs under Section 125 of the Customs Act, 1962. Further he imposed penalty of Rs. 2 lakhs on the importer under Section 112(a) of the Customs Act, 1962. The appellants are aggrieved over the impugned order and have come before this Tribunal for relief.

(3.) SHRI G. Mohan Rao, the learned advocate appeared for the appellants and Shri G. Havanur learned advocate submitted the following points.