LAWS(MAD)-2013-6-306

COMMISSIONER OF CUSTOMS Vs. PONNERI STEEL INDUSTRIES

Decided On June 20, 2013
Commissioner of Customs (Sea) Appellant
V/S
Ponneri Steel Industries Respondents

JUDGEMENT

(1.) The Revenue is on appeal as against the order of the Customs, Excise and Service Tax Appellate Tribunal, Chennai passed in Final Order No. 816/2007, dated June 29, 2007, raising the following substantial question of law:

(2.) It is a matter of record that the metallurgical inspection report pointed out that based on visual examination and chemical analysis, the material could be considered as non-alloy steel skull scrap suitable for melting and the percentage of recovery of iron from the scrap was about 80 percent. by weight. The assessee claimed that the goods declared in the bill of entry were non-alloy steel melting scrap consisting of skull and the same fall under Heading 72.04. Whereas, the Revenue sought to assess it under Heading 26.19 treating it as slag. In spite of the objection raised by the assessee that the materials were for melting purpose only, the Revenue treated the same as falling under Heading 26.19. In the circumstances, the Revenue held that the goods were liable for confiscation under section 111(d) of the Customs Act, 1962 read with section 3(3) of the Foreign Trade (Development and Regulation) Act, 1992 and also under section 111(m) of the Customs Act. The adjudicating authority passed an order accordingly, allowing the importer to redeem the goods on payment of fine of Rs. 4,00,000 in terms of section 125(1) of the Customs Act and imposing penalty of Rs. 40,000 each, on the assessee as well as on M/s. Shree Ganesh Steel Rolling Mills Ltd., under section 112(a) of the Customs Act.

(3.) Aggrieved by this, the assessee went on appeal before the Commissioner of Customs (Appeals), who upheld the order of the adjudicating authority. Aggrieved by this, a further appeal was filed by the assessee before the Customs, Excise and Service Tax Appellate Tribunal.