PRATEEK TRADERS Vs. COMMISSIONER OF CUSTOMS, AHMEDABAD

JUDGEMENT

(1.) AS per facts on record, the appellants imported 97.78 MTs of the goods declared as Heavy Melting Scrap and accordingly filed Bill of Entry on 1 -9 -04 declaring the value of the same as Rs. 9,00,052/ -. The said goods were purchased by the appellant on high sea sale basis. On examination of the same, the goods were found to be old, used, discarded automobile vehicle and their parts in semi -knocked down condition. It was also noticed that the consignment consisted of cater pillars, fork lifts, road roller etc.

(2.) ON the allegations of mis -declaration of the goods and their value thereof, proceedings were initiated against the appellant, which culminated into an order passed by the Additional Commissioner, confiscating the same with an option to the appellant to re -deem the same with payment of redemption fine of Rs. 1.50 lakhs. Further, by holding that the goods were classifiable under various chapters of CETA, by treating the same as serviceable goods, the adjudicating authority enhanced the value of the same to Rs. 12,94,800/ -. Penalty of Rs. 50,000/ - has been imposed upon the appellant under Section of Customs Act, 1962. Appeal against the above order did not succeed before Commissioner (Appeals). Hence, the present appeal.

(3.) THE issue to be decided in the present appeal is as to whether the goods imported by the appellant in the shape of old, used, discarded vehicles and their parts, can be considered as scrap or not. The appellants have strongly contended that the goods were purchased on high sea sale basis and declarations were made on the basis of documents so received by them from the seller. The goods were not in serviceable condition, as noticed by the first examination report. However, it was only subsequently at the time of drawing of Pachanama that the re -examination was done in the presence of pancha witnesses who cannot be considered to be expert. The appellants have also relied upon another opinion of the expert obtained by them immediately after drawing of Panchanama, which indicates that the goods are old/discarded/unserviceable/in broken condition/bent/rusted /beyond repair and damaged. As such, it stand contested before us that in the light of the above experts opinion and there being no other opinion of any expert person, the goods have to be treated as scrap. Appellants also made a request to the Customs authorities to order mutilation of the goods if they are of the opinion that the goods are of serviceable condition.