MITESH IMPEX Vs. COMMISSIONER OF CUSTOMS, SURAT

JUDGEMENT

(1.) THE appellant in this case has imported a consignment of brass scrap describing them as Mix Metal Scrap Mainly Brass or Mix Metal Scrap Iron attached without specifying the percentage of the main metal and cleared the same though Kandla port at US $ 625 PMT. On investigation, it was found that the metal was mis -described as Mix Metal Scrap whereas it was a Brass scrap pale Grade and therefore, was to be assessed as per the tariff value fixed under Notification No. 52/2002, dated 16 -8 -2002.

(2.) HEARD both the sides. The main contention of the appellant is that they are a 100% EOU and are therefore, entitled to clear the scrap at nil rate of duty and though they have ordered for mix metal scrap, the supplier has supplied the brass scrap which was meant for actual use and since they were entitled to duty free clearance, they could not have any intention to evade any duty. Therefore, the confiscation of goods and subsequent imposition of redemption fine and penalty is not called for. It was also submitted that the scrap in any case is freely importable requiring no license and therefore, the import of the same could not have been considered as prohibited and liable to confiscation under Section 111(d) of the Customs Act, 1962.

(3.) WE have considered the submissions. We find that the goods have been described as mix metal scrap which on examination, and on chemical test by the Chemical Examiner, was found to be brass scrap of Admiralty grade and therefore, cannot be considered as mix metal scrap. We however, find merit in the plea of the appellant that in the bill of entry, they have themselves claimed tariff value under Notification No. 52/2002, dated 16 -8 -2002 and further that since they were entitled to duty free clearance of the import of scrap, they could not have any intention of mis -describing the goods. In view of this, we set aside the confiscation and penalty imposed on the appellant. The enhancement of the value is not disturbed. The appeal is therefore, allowed by setting aside the penalty and the redemption fine.