METROLLA STEELS LTD. Vs. COMMISSIONER OF CUS., COCHIN

JUDGEMENT

(1.) THE appellant challenges the order of the Commissioner made on 7 -11 -2005 ordering that the goods which were imported (scrap) were classifiable as M.S. Rods of prime quality and they should be levied duties on that basis. The appellant has also challenged the enhanced transaction value and the confiscation of the goods as well as imposition of penalty.

(2.) THE appellant filed two bills of entry dated 19 -10 -2005 and 20 -10 -2005, for clearance of 176.015 MTs and 321.320 MTs, respectively, of the goods declared as heavy melting scrap, classifiable under Heading 7204 for which the importer claimed the benefit of the Notification No. 21/2002 S.No. No. 200 applicable for melting scrap, on execution of end -use undertaking and production of end -use certificate. The declared value related to the goods having been declared as heavy melting scrap. When the goods were assessed on second check basis on open order being given and examined, it appeared that, in one of the containers 70% of the goods were of prime quality steel rods of the length of 510 cm. with a diameter of 40 mm, while the remaining 30% rods of the same diameter were of the length of 170 cms. The goods of the other container which were examined, were also prime quality steel rods (mild steel) to the extent of 60%, having length of 510 cms. and a diameter of 40mm. Twenty per cent of these goods having the same length were having diameter of 30 mm, while the remaining 20% had a length of 180 cms. with a diameter of 40 mm. In respect of the other bill of entry, four containers were examined which were found to be having prime quality steel rods (mild steel) in the ratio of approx. 60% having length of 510 cms. and a diameter of 40 mm, and 30% having length of 170 cms. with the same diameter.

(3.) AS noted in the impugned order, 100% examination of goods was done and it was confirmed that, in all the containers majority of the goods were mild steel rods of prime quality of the same dimensions as noted above. The prime quality M.S. Steel rods were thus imported by declaring them as scrap.