COMMISSIONER OF CUSTOMS, KANDLA Vs. SHEKHAR IMPEX

JUDGEMENT

(1.) THIS is Revenue appeal. The short issue involved is that while the respondents have declared their goods as Mix Metal Scrap, the material imported was Brass scrap only and therefore, they were issued a show cause notice for mis -declaration of their product on the ground that the value of contemporaneous goods is less whereas the tariff value of Brass scrap fixed is much higher.

(2.) HEARD both sides.

(3.) FROM the grounds of appeal we find that it is not the charge of the Revenue that under the conditions of grant of 100% E.O.U. licence the respondents were not entitled to import Brass scrap. The only contention is that Brass scrap was mis -declared, both in terms of description as well as value even though it was accepted that the Brass scrap was required to be assessed at the tariff value fixed by the Government. We hold that once the respondents have declared that the goods may be assessed at the tariff value fixed by the Government there cannot be any intention to evade duty and the mis -declaration cannot be said to be deliberate but out of mis -understanding. Since both, the Mix Metal scrap and the Brass scrap are freely importable, confiscation cannot be upheld under Section 111(d) of the Customs Act, 1962. Similarly, in respect of value the help of contemporaneous import can be taken only for the purpose of assessment and not for the purpose of establishing misdeclaration unless it is supported by some corroborative evidence. In the absence of the some charge misdeclaration of value cannot be upheld.