VIPIN ENTERPRISES AND SHRI DINESH Vs. C.C.

JUDGEMENT

(1.) THE appellant imported 3 consignments of Zinc and filed 3 bills of entry dated 25.11.1998 before the Bombay Customs House. The goods were declared as 'Re -melted Zinc Ingots'. Invoice from American Trade Link, Inc., Houston was produced in support of the declared price f 600 U.S. per M.T.

(2.) CONSIGNMENTS were assessed provisionally and cleared against bond. Samples taken were sent to the Customs House Laboratory for testing. Upon test, they were found to be of 99.4, 99.5, and 99.6% zinc. The chemical examiner opined as under: Sample is in the form of cut piece of rectangular ingot. It is mainly compound of zinc. The percentage of zinc in the sample as received 99.6. In the light Chapter heading 79.02/72.04 of H.S.N. It does not appear to be re -melted zinc ingot. Show cause notice was issued to the appellant on 11.1.2000 alleging mis -declaration of value and proposing to enhance the value to 1500 U.S. per M.T. Basis for this enhancement of value was that Electrolytic High Grade Zinc had been imported in the same month by M/s. Jindal Iron & Steel Co. at that price.

(3.) THE appellant contested the proposal pointing out that re -melted zinc under import cannot be compared with electrolytic high grade zinc. The appellant also pointed out that even in the case of Electrolytic High Grade zinc, many imports had taken place, including by MMTC, around U.S. 1000 per M.T. Thus, the appellant's objection was two fold, first that comparison was not with identical or similar goods, and second that lower import prices should not be ignored.